Jaguar is relying on its replacement for the S-type sedan to help turnaround its low sales results that the company has been experiencing. Parent company Ford will keep the ailing British marque despite Jaguar ending up as the worst performer in its Premier Auto Group. This S-type test mule was caught by spy photographer Brenda Priddy as it was circling the Nürburgring.

The test car here is a special “cooling mule” that features only the new car’s front end joined to the current S-type’s body. Under the hood will be the new car’s running gear and cooling system. Close inspection of the image reveals a much longer hood and lower grille that will give the new S a sleeker overall look. The body is expected to feature a wedge shape with a high waistline and trunk. All will be revealed at next year’s Frankfurt Motor Show with sales starting in early 2008.

A previous report suggested that the body will adopt four-door coupe styling, while the new grille will feature a twin-nostril element. The current six-cylinder engine will carry over, but will be replaced later with Volvo units. Also, a high-performance 5L V8 is rumoured to be in the works with 460hp in supercharged form. Follow the jump to see the full image over at Winding Road.

[Source: Winding Road]