It's (unofficially) confirmed: Jaguar engineers are currently hard at work on a diesel-powered XK, AutoCar reports. "Despite saying at launch that the coupe and cabriolet would only have [gasoline] power, senior engineering sources have revealed that the economic situation has forced a rethink. So has the success of the BMW 635d."

The report said that power for the diesel XK will come from the twin-turbo, 3.0-liter iteration of the 2.7-liter V6 turbo-diesel that's currently used in the company's sedans over in the UK. Expect over 250 hp, and over 30 mpg on average. There's no word on whether or not we'll see it in America, though the chances are probably slim at best. (Via Autoblog)