New Jag is cat's whiskers

It is Monte Carlo, the sun is shining and I'm behind the wheel of a top Birmingham-built sports car – life doesn't get much better than this, writes motoring editor Pete Carroll.

Monaco has plenty of distractions, with its massive yachts, casinos and fancy pads. But this week it is Jaguar week, as the new XF is launched in style on the French Riveria.

Of course this car is small fry compared to the multi-million pound yachts sitting in the famous harbour. The XF is priced from £33,900 for the entry-level 2.7 litre diesel to £54,900 for the supercharged SV8 flagship.

But that hasn't stopped it getting admiring glances from the locals.

Jaguar has deliberately pushed the boat out to provide a glamourous backdrop for the launch of a car which is vital to the company's future.

The West Midland firm faces uncertain times after being put up for sale by owners Ford – and desperately needs its new XF saloon to be a hit.

The sporty XF marks the beginning of a new era for Jaguar, which is moving away from retro-styled cars like the S-Type and X-Type.

And on first impressions it is a car which could provide the leaping cat firm with a solid future.

From the moment you sit in the XF and turn on the engine it's clear that this is a special vehicle. From the Formula One roads of Monaco to the spectacularly meandering Alpine roads nearby, the Jaguar oozes class.

The start button lights up and pulses like a heart beat, then the gear knob rises out of the centre console like an old theatre organ.

When you switch on the ignition, the air vents swivel open in the dash board. It's a cool effect – but there's more to the XF than flashy gimmicks.There's plenty of power on tap from the 4.2 litre petrol engine and the 2.7 diesel holds its own too.

As I returned my car to its garage in Monaco, I was flagged down by a young man in a Mercedes soft top wanting to know more about the car. If the XF is good enough to make an impression among the great and the good of Monte Carlo, it should be good enough to give Jaguar's rivals a real run for their money.