Jaguar has a storied pedigree, of course. Yet its efforts at building a competitive small luxury sedan have largely floundered until now. The 2018 Jaguar XE muscles its way into garages that once hosted other European stalwarts, doing it through a combination of style, performance and modern technology. Key to this success is a varied engine lineup. There's a punchy four-cylinder gas engine, a fuel-sipping diesel four-cylinder, and a supercharged V6 available in 340-horsepower and 380-hp configurations. Pair any of these with the XE's exemplary handling and steering, and you have a clear formula for a fun-to-drive small luxury sport sedan. There's more to this Jag than high-octane antics, though. The XE also offers much of the latest in-car tech and connectivity (including a large touchscreen interface, a digital instrument/gauge cluster and smartphone app integration) as well as a full suite of driver assistance and aids. About the only disappointment we can level at the XE is the mediocre quality of its cabin materials and its relatively cramped backseat. But if you can live with an interior that's subpar for the class yet still pretty nice, and you don't plan to shuttle around too many friends, the XE is among the most fun and responsive sedans you can find in this group.