It's not easy to take on the sports-sedan masters -- the BMW 3 Series and Audi A4 -- but the XE makes an admirable attempt with mixed results. The XE has sporty and athletic handling characteristics, but it falls a bit short on interior room and fit and finish.
On the road, the XE is a delight to drive. It carves windy roads or our track with ease, making the sleek cat a delight to drive with gusto. The standard 247-hp, 2.0-liter four-cylinder turbocharged engine that responds quickly when you press down on the gas pedal. But that doesn't translate into quite enough firepower, as the XE takes 7.7 seconds in the 0 to 60 mph acceleration sprint -- trailing its competition by about a second. This engine also sounds a bit raspy, which takes away from a quality feel you'd expect in this class. To add insult to injury, the AWD model we tested registered 25 mpg overall, which is a middling number for the luxury compact sedan class. The eight-speed automatic transmission is smooth and responsive. However, the stop/start system restarts the engine with a shudder, chips away at this feline's graciousness, and will annoy both drivers and passengers.
Overall, the XE's ride is steady, controlled, and comfortable, with impressive body control. But don't expect the plushness of its big brother, the XF; some jiggles are evident over the roughest pavement. The cabin is quiet except for that gritty sound when the engine is revved, yet another count where the XE trails its peers.
Interior quality does not equal the price of admission. At first glance the cabin looks good, if a bit plain. Further scrutiny reveals some sharp edges, wide panel gaps, and cheap touches, that don't measure up to the class.
Clearly, you don't choose a compact sports sedan for its rear-seat room, but the XE's rear seat is extremely tight even by the modest standards of this class. Its low stance and a small opening make even getting in the front a chore. The controls aren't particularly easy to use, ranging from odd to frustrating, and the infotainment system can be distracting. Drivers can't interact with the phone through steering wheel controls and the cluster between the gauges, as drivers of its German competitors can.
Finally, we wish that a host of optional advanced safety and driver assistance features, such as blind spot warning, were standard across all trims.