Jaguar has officially started producing its most important model in recent history, the 3-Series rivaling XE in the heavily updated Solihull factory.

The all-new XE is the first Jaguar to be produced in the historic Land Rover plant with the upcoming F-Pace SUV to be built there as well. JLR has invested £500 million into the ‘factory within a factory’ which now includes Europe’s largest aluminum body shop after a £1.5 billion investment on new aluminum modular architecture which will spawn future Jaguars.

The XE is the first Jaguar to use this new modular architecture, using lightweight aluminum for 75% of its structure with the F-Pace SUV next in line. Jaguar claims that the XE is the lightest, stiffest and most aerodynamic saloon it has ever built.

Jaguar’s entry level model goes on sale next month with prices from £26,995 for the UK market and three engines to choose from: an all-new Ingenium 2.0-litre diesel engine with two outputs, a base 161hp version which offers a class-leading 75mpg fuel economy and 99g/km of CO2 emissions and a more potent 178hp version which returns 67.3mpg and 109g/km respectively.

The petrol range consists of a turbocharged 2.0-litre petrol engine offered in two guises as well, with 197 or 237hp while a supercharged 3.0-litre V6 sits on top of the range offering 335hp and 450Nm/332lb ft of torque, allowing the XE to accelerate from 0 to 62mph in 5.1sec with the top speed limited to 155mph. A six-speed manual gearbox will be offered as standard in the diesel versions, with an eight-speed auto to be offered as an option. All petrol models will be offered with the auto as standard.

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