The car that Jaguar hopes will reverse its fortunes has begun production at the company's Castle Bromwich plant.
The company wants the XF to compete with the best of what the Germans can offer and promises better build quality than its predecessor, the S-Type.
There has been significant investment in the new facility at the Castle Bromwich plant to ensure that the new XF is built to even higher standards.
Jaguar could be sold off to Indian company Tata next year, as Ford tries to offload the ailing company.
But the XF is a new direction for Jaguar with far less retro styling than other models
The first production car, a Vapour Grey 4.2 litre SV8, has been donated to the Jaguar Daimler Heritage Trust collection and will go on display alongside some of Jaguar's most prestigious and memorable vehicles.
More than 500 employees from the plant gathered to watch Sir William Lyons' grandson, Michael Quinn, drive the car off the end of the Trim and Final production line.
He said: 'My Grandfather would have been immensely proud today.
'The new XF is a car that truly represents the core values which have lain at the heart of this great brand since its foundation in 1922 and I am thrilled to have been asked here today to witness this historic event from the best seat in the house.'