Although the automaker had said that the XK would be gas-powered only, the success of BMW's diesel-powered 635d coupe has Jaguar hoping the oil-burning sports cars will increase sales.
The new engine may be a twin-turbocharged version of the 2.7-liter VD turbodiesel V-6, currently used in the European-spec XF and XJ sedans. The revised diesel could produce over 250 hp (an increase of 46 hp) and return more than 30 mpg. The new variant would be offered only in Europe.
Source: Autocar