Sometimes called the "Baby Jag," other times as X400, its internal code name, the new sedan becomes the fourth line in the fast-growing Jaguar model mix.

It is going to give the mid-lux some added competition. Where the XJ sedan and XK coupe/convertible compete in the skies the limit side of the luxury line-up, and the S-Type goes after the mid-luxury world of the Mercedes-Benz E-Class, Jaguar's newest entry takes aim at the "affordable luxury" segment. It's the fastest-growing niche in the premium market, having nearly doubled over the last five years. It's also the most competitive segment, dominated by the prominent BMW 3-Series.

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Distancing Mondeo is key: Considering its base price, it would have been easy for the X-Type to make a lot of compromises. It might have turned into little more than a high-line Mondeo-with the trademark "leaper" hood ornament. It's good to report that despite some modest similarities to the Ford sedan-notably the side dimensions-the X-Type is a car that more than lives up to our tough expectations.

As you'd expect, the X-Type is loaded with creature comforts and safety features, including standard dual-stage front and side airbags, as well as head curtains for front and rear occupants. The S-Type's digital control system has been improved: it now features a seven-inch video monitor and you can use voice commands to control the navigation system, as well as climate control and audio.

The biggest surprise about X-Type was Jaguar's decision to launch it only in all-wheel-drive configuration. That was a brilliant decision, for if it had followed Mondeo's lead, and emerged as a front-driver, X-Type simply wouldn't have amounted to very much. The vehicle has a 60/40 weight balance, biased to the front, but the powertrain's torque is biased 60/40 to the rear. Don't go looking for your college physics text. The bottom line is this: you have to go to extraordinary lengths to lose traction, even on the wettest of pavement. Powering the vehicle, buyers will have two possible options, a 2.5-liter, variable-cam V-6 that punches out 194 horsepower, or a slightly larger, 3.0-liter version rated at 231 hp. The aluminum block is based on Ford's Duratec powerplant, but the heads are unique to Jaguar.

Luxury plus in this vehicle. The interior is a rich mix of leather and wood-Jaguar's familiar bird's-eye maple, to be more precise. Where the S-Type looked a bit tacked together, the X-Type looks well conceived and integrated, and far more lavish than one might expect at the price. The seats are firm yet comfortable, especially in the Sport Package, which provides a good bit more bolstering, something we found essential when we put the X-Type through its paces. While thereÕs plenty of leg and headroom up front, itÕs a wee bit more cramped in the back, but not nearly as tight as with some of its competition.

More than any manufacturer: X-Type's speed-sensitive rack-and-pinion steering was taut and responsive, providing great road feel and no trouble finding center. The basic suspension package uses a novel, two-bearing front mount and it proved more than adequate, a well-tuned balance between ride comfort and handling. But for those who want to reach the vehicle's limits, we'd strongly recommend the stiffer Sports Package. You'll also get a set of Brembo brakes. On our soggy two days of driving, they proved uncanny in their ability to scrub off speed in a hurry. Basic wheels and tires, by the way, are 16-inch, with 17-inchers part of the Sports Package, and an 18-inch option reportedly on the way. This awesome handling Jaguar is worth the test drive as a stock package. JH/AutoNetDirect.com

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