Jaguar's last compact sedan, the Ford-derived X-Type, left luxury buyers seriously unimpressed. Jaguar hopes its new car will do better. Photo credit: Jaguar Cars

Ever since India's Tata Motors (NYSE:TTM) bought Jaguar and Land Rover from Ford (NYSE:F) in 2008, one big question has been asked: Would Tata be willing (and able) to make the big investments needed to make Jaguar a competitive global luxury brand?

One part of that is being answered now, as Jaguar says it has the go-ahead to produce a much-needed new model, a compact luxury sedan to rival BMW's (NASDAQOTH:BAMXF) 3-Series. In this video, contributor John Rosevear explains why the new baby Jag is so important to the company's chances -- and fills you in on when we can expect to see the new car hit dealers.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear.The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.