AutoExpress reports that Jaguar still plans to come out with a competitor for the BMW 3-series. It also says Jag is developing a nine-speed transmission. "The newcomer - which would sit below the XF in the line-up - will be front engined and be offered with a choice of rear and four-wheel drive, just like the recently launched XF and XJ AWD models," AutoExpress says. It says the 3-series fighter would come in sedan and wagon styles, and there could be an SUV spinoff to broaden the lineup. The 9-speed would probably come out around 2014, and that's probably as many gears as Jaguar will offer.

Photo: The Associated Press

Third Gear: Jag Is Still Working On A 3-Series Fighter