Supermodel Elle Macpherson – nicknamed The Body by the press – showed off the body of the new Jaguar XJ.

The glamorous Australian wore a figure hugging short dress and high heels for the launch of the car at a star-studded party in London last night.

US TV host Jay Leno, Baywatch star David Hasselhoff and singer Sophie Ellis-Bextor were among other celebrities at the event at the Saatchi Gallery.

It is hoped that the flagship car will help Jaguar – now owned by Indian company Tata – which has been battling with a cash crisis as the global downturn punishes the car industry.

But David Smith, chief executive of Jaguar Land Rover, said that there may have to be further job cuts.

He said: “Over the last year, we have had to do a lot of things in terms of job reductions, and taking capacity out of the business, and we will continue to look at that, I certainly wouldn’t want to rule that out.”

Design director Ian Callum said: “It’s a beautiful car, all the values are still there, a very modern car, and fits in with the 21st century.”