The Jaguar S-Type receive several updates for this second year of production. New standard features include rear child seat anchors, Reverse Park Control, and 10-spoke alloy wheels. The power steering and voice-activation technologies have been upgraded, and two new colors also debut. A Deluxe Communications Package with Motorola Timeport has also been added to the options list.

Again, only two styles will be offered, primarily differentiated from one another by the power plant. The two models are relatively close in price, but the upper level 4.0L sedan adds a few additional features. The S-Type's entry-point is the 3.0 Liter sedan, and a V8-powered model is also available. The 3.0 liter V-6 generates 240 horsepower and 221 pound-feet of torque, while the 4.0 liter V-8 supplies 282 horsepower and 287 pound-feet of torque. Both engines are paired with a five-speed automatic transmission. Drivers report mixed driving averages in the low 20s with both models, but the V-6 is a bit more economical. Fuel economy is estimated at 17/23 mpg for the V-8 and 18/26 mpg for the V-6.

Drivers and reviewers report a very silken and controlled ride, but the Ford-supplied transmission does not offer the refinement that one might expect from a Jaguar. Most were very pleased with the acceleration, even with the V-6, along with the handling and overall feel of the car. Interior and exterior styling are common favorite features, specifically the uniquely retro front grille, taillight design, and the wood interior finish and leather trim. Warnings continue about faulty electrical systems, expensive parts and service, thirsty engines and some ergonomic aspects (CD changer in truck, small cupholders).