This new entry-level offering from Jaguar debuted in 2002, showcasing the union between Ford and its new subsidiary. The X-Type sedan is built on the Ford Mondeo platform, and only 10% of all parts and components actually originate from Jaguar. Over 20% are Ford-produced. The X-Type is relatively compact compared to the flagship XJ sedan, with which its shares many design elements. It is also the most affordable Jaguar ever, in real dollars.

The X-Type is aimed at the lower level luxury market, and in direct competition with models like the BMW 3-Series, Acura TL, Mercedes C-Class, Infinity G35 and the Lexus ES. Jaguar also hopes to meet the needs of a larger group of prospective buyers, with its first ever all-wheel drive car.

A multitude of engine options were available on models produced for Europe, including a diesel, but the U.S. market was only provided with two power plant choices. The base model is equipped with a 2.5 liter V-6, which churns out 191 horsepower and 180 pound-feet of torque. The X-Type is surprisingly light for a Jag, at just 3400 pounds, and that power supply is sufficient for a respectable 0 to 60 mph mark of 7.9 seconds. Fuel economy is estimated at 19/28 mpg. Also available is a 3.0 liter V-6, which generates 227 horsepower and 209 pound-feet of torque. The 0 to 60 time drops to 7.1 seconds here, and fuel economy falls to 18/25 mpg. A five-speed manual transmission comes standard with with the 2.5 liter engine, while the 3.0 liter version gets a five-speed automatic.

Both models could be described as Jaguar-esque with respect to standard features, but Ford's influence is very evident both inside and out. Standard equipment includes keyless entry, an anti-theft system, steering wheel audio controls, full power accessories, heated mirrors, wood trim, leather upholstery, automatic climate control and a leather-trimmed steering wheel and shift knob. Some components are obvious Ford products, but many reviewers still attest to an overall upscale feel. However, a Jag enthusiast would quickly be able to distinguish the X-Type from the more upscale offerings. Many luxury options are available, but the overall cost is heavily impacted by their inclusion. The starting price is below $30,000, but the true cost of ownership with options and service will detract from the apparent value.

The X-Type also earns solid marks for handling and driveability, and was set apart as the only Jaguar with AWD and a manual transmission in 2002.