The 4.0-liter V8 engine is another matter, offering spirited performance with enough low-end torque to deliver brisk acceleration. Jaguar says the car will accelerate form 0 to 60 mph in 6.6 seconds, which is quite quick, though not quite as quick as the BMW 540i.

The unique-to-Jaguar J-gate shifter has been retained in an all-new 5-speed automatic transmission. This lets the driver move the shift lever into a second gate where it can be shifted manually from gear to gear. It's not quite the same as a manual transmission, however, as it tends to upshift and downshift as it sees fit, regardless of what the driver wants it to do. And it's a long throw between gears, so it's possible to get lost for a moment between drive and reverse when trying to turn around in a hurry.

Driving the S-Type along twisty mountain roads is wonderful. The steering is very precise and provides good feel at speed. At the same time, the steering remains light to the touch at low speeds, making driving around town and in parking lots a bit easier.

Handling is firm without being too harsh. Jaguar's S-Type is not as stiff as the BMW 540i. It is the type of car that inspires confidence for those who enjoy driving without being a chore for those who do not.

The S-Type uses rear-wheel drive with a fully independent suspension. It shares its basic architecture with the Lincoln LS, but the two cars are completely different in character, a tribute to the engineers for both cars.

Jaguar's optional Computer Active Technology Suspension, or CATS, automatically adjusts shock absorber damping between soft and firm based on road conditions and vehicle dynamics; it's provides an optimum balance between ride quality and handling. We found that CATS does a great job of filtering out road vibration and rough surfaces without isolating the driver from the road. With it, the car feels unflappable in the corners without riding like a race-prepared sports sedan on city streets.

S-Type comes standard with a traction control system that operates at all speeds; it limits rear wheel spin by cutting power to the engine and applying the brakes. Another system, Dynamic Stability Control, or DSC, links the brakes, steering, and traction control system and analyzes information from on-board sensors to determine when the car is deviating from the driver's intended path. It then applies brake force to each individual wheel to readjust the car's course. This system helps the driver avoid losing control of the car, by preventing oversteer (skidding of the rear wheels).