Austin Powers makes Jaguar groovy baby

Jaguar has announced that sales of its XK8 have rocketed thanks to its association with Austin Powers.

The spoof spy's "Shaguar" in his new film Goldmember is a version of the sports car, resplendent in Union Jack livery.

The marketing power of celluloid has long been recognised, particularly when the product is associated with a "cool" character. But Jaguar opted to link itself with the slightly less conventional hero in the shape of Mike Myers' gawky agent.

"The sensuous curves, powerful engine, and imposing stance of the XK8 make it the ideal mode of transportation for a character like Austin Powers," explained Susan Callaway, Vice-president and general manager of Jaguar North America – possibly with some humour. And the move appears to have paid off with sales shooting up by 73 per cent.

George Pipas from Ford, which owns Jaguar, said: "Americans generally have a sillier sense of humour than the Brits, and Austin Powers seems to have made the Jaguar an even cooler car over here."

A Jaguar TV advert shows a US town changing into central London as the car drives through it to the strains of the Clash hit London Calling.