Under loss of traction front or rear, the coupling could vary the front/rear torque split and could fully transfer torque to either front or rear wheels to ensure grip. Initially, the X-Type was available only with all wheel drive, using a centre differential and a compact, maintenance-free viscous coupling with a default split of 60 percent torque to the rear wheels, 40 percent to the front wheels.

Instead, the X-type used a modified version of the front-drive Ford CD132 platform shared with the contemporary Ford Mondeo - with the addition of all-wheel drive (marketed as Jaguar Traction or Jaguar Traction 4) and handling and steering engineered to minimise front-wheel drive torque-steer. The X-Type, codenamed X400, launched in 2001 to compete in the compact executive class dominated by the rear-wheel drive BMW 3 Series and Mercedes-Benz C-Class, despite Ford/Jaguar having no directly competitive platform. With annual projections of 100,000 sales, the X-Type recorded a production of 350,000 over its eight year manufacturing run. At launch, Autocar called the X-Type 'the most important Jaguar ever'. The programme aimed to double the marque's worldwide sales - requiring expansion of engineering resources, factory capacity, marketing capability, sales support and service. The X-Type was developed during the period when Jaguar was owned by Ford as a division of its Premier Automotive Group (PAG) (1999-2009) - and marked Jaguar's entry into the critical compact executive segment.

In addition to offering Jaguar's first estate car in series production, the X-Type would ultimately introduce its first diesel engine, four-cylinder engine and front-wheel drive configuration. Given the internal designation X400, it was front engined and sold with both front-wheel drive and all-wheel drive variants. Considered a large family car in Europe and a compact car in the US, the X-Type was part of the compact-executive market segment and was sold in four-door saloon and five-door estate body styles. The Jaguar X-Type is a car built by British marque Jaguar from 2001 to 2009.

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