Our spy photographers have tracked down Jaguar’s new XE undergoing testing. The British automaker’s latest model is a compact, two-seater sports car based on the XK model and is set to compete against the 911.The prototype model spotted during testing is riding on a shortened chassis and body of the XK. The XE will be available as both coupe and cabriolet variants, and our spies spotted the cabrio derivative during testing. Given the long Jaguar front, it will sport a mid-front engine mounting for performance handling. The XE is also expected to be fitted with a V6 engine in at least two configurations; a naturally-aspirated and a supercharged variant. Power output levelsshould be competitive with Cayman and 911 models which the new XE is pitched to go up against.Jaguar’s XE is to be launched in 2013. Check out our gallery!