The Jaguar F-Type roadster prototype, unveiled as the XK180 at the Los Angeles motor show three years ago, is expected to finally go into production.
The compact convertable received such a frenzied welcome at LA that Jaguar began development work on it shortly after the show closed.
But the project ran into financial trouble and was canned. Ford-owned Jaguar instead turned to projects that would potentially mean more sales and more money.
It developed the X-Type wagon - the first example of which is now in New Zealand - and began work on a range of diesel engines.
Reports from America and Britain say that now the X-Type wagon and diesel projects are complete, Jaguar is returning to what it calls its "image" cars.
Rumours that engineering work has restarted on the F-Type came after reports that Jaguar had bought examples of the Audi A4 and Saab 9-3 convertibles, the F-Type's likely price rivals, so that its engineers could study the folding roof designs.
The F-Type is tipped to join the Jaguar line-up as a smaller and more affordable version of the sleek XK8 convertible.
News of the on-again project tallies with earlier industry reports on the car's new launch timetable. Britain's Car magazine reported 18 months ago that the F-Type was scheduled to go on sale in 2007, after a probable unveiling at the 2006 Paris motor show. The F-Type will be built on the next-generation X-Type platform, which has been designed for rear-drive/four-wheel-drive set-ups and not front-drive.
The F-Type is also expected to use a similar drivetrain and suspension to the next-generation S-Type, which will be built from a lightweight aluminium structure derived from the XJ executive sedan.
Other models in the X-Type line-up are expected to be a compact three-door coupe, inspired by the radical RD-6 concept unveiled at last year's Frankfurt show, and a conventional four-door sedan.
There is talk in Britain that Jaguar will also build a four-seater convertible to compete with the upcoming BMW 4 Series.
Meanwhile, Jaguar in New Zealand is understood to be looking at trialling the V6 diesel version of the facelifted S-Type.
The updated model range - "cleaner, leaner, more athletic" says Jaguar - arrived here last month, sporting a stronger body, improved dynamics, a lightweight aluminium bonnet, new instruments, new materials.
The 2.7-litre diesel V6 delivers 153kW (206bhp) at 4000rpm and a whopping 435Nm of torque, most of it from 1500rpm.
Jaguar sinks its teeth into F-Type
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