If you want a smaller, affordable Jaguar->ke39 sedan->ke142, your dream is one step closer to reality. Our spy photographers have just captured the upcoming 2016 Jaguar XE getting a workout around the "Green Hell."

The new shots don't really give us any more information about the car, but they do give us a pretty strong indication that the car is nearing the end of its development cycle. Usually, by the time cars hit the Nurburgring->ke999, they are undergoing final suspension tuning.

Seeing the Jag on the 'Ring reiterates their desire to beat the Audi's->ke14, Mercs->ke187 and BMWs->ke178 that currently dominate this segment.

That said, the XE is still wearing a surprisingly large amount of camouflage, and it makes me wonder if Jaguar might be hiding a little something we are not yet aware of. If you don't like the camo look, we have a stunning exclusive render of what the new XE might look like after the break.

Whatever the case, expect the Jaguar XE to be unveiled late this year with an on-sale date sometime next spring as a 2016 model. Engines will include a collection of V-6 and V-8s mirroring Jag's other offerings. Expect AWD to available as well.

Click past the jump to read more about the 2016 Jaguar XE.

Why It Matters

Tuning at the Nurburgring is far less impressive today than it has been in the past, but it still shows that Jaguar is serious about building a true competitor for the BMW 3 Series. Lots of companies make sporty, RWD sedans, but no one has yet been able to match the poise of the BMW.

I have high hopes for this new Jag, and you should too.

Spy Shots

2016 Jaguar XE - Rendering

The Jaguar XE is the newest car to come from the British company. The car is a smaller sedan than anything the brand currently sells and it is aimed squarely at the market of the BMW 3 Series, Mercedes C-Class and the Audio A4.

The sedan will feature Jaguars signature clean, yet swoopy design aesthetic and will feature multiple drivetrain options. Expect a supercharged V-6 in two power trims, similar to the F-Type, and at least one V8 choice to come later.

Transmission choices will be limited to Jaguar's 8-speed auto across the board, and AWD should be available on at least one trim.