Next spring, Jaguar will launch its first serious volley into the modern compact sport sedan market with the 2017 XE, and today, the British automaker revealed North American versions will get a diesel engine option right off the bat.

The oil-burner (called Ingenium by Jaguar) will be used in a model dubbed the XE 20d, so-named for the 2.0L engine’s displacement; matched with an eight-speed automatic transmission—the only one to be offered—the diesel will generate 180 hp and 318 lb-ft of torque. Jaguar says the diesel XE will be its most fuel-efficient model.

Buyers after more straight-line performance should like what they see in the XE 35t, which will use a supercharged 3.0L V6 good for 340 hp and 332 lb-ft, also to be paired with the eight-speed auto.

Both models will be offered in a trio of trims, including Premium, Prestige and R-Sport; rear-drive will be the default, with AWD being an option with both engines, and in any trim.

Jaguar says the diesel will incorporate some interesting tech, like a split cooling system that can circulate coolant through the cylinder head while leaving still that in the block’s cooling passages, enabling quicker warmups; a variable speed oil pump varies its flow rate depending on engine speed, and piston cooling jets are called into action only when needed.

We’re still months from knowing what Jaguar will charge for the XE, but we’d guess the Brits will undercut the 3 Series, which, as we write this, is priced at $48,000 for the 328d (with standard all-wheel drive), and $51,400 in turbo/six-cylinder 335i form.

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