Options to generate XML data from tabular data

Hi!
We have a functional requirement to implement an XML-generation from tabular data, in .NET.
Non-functional requirements are that the schema of the XML-document, and the mapping between the fields in the tabular data and the elements/attributes must be “as dynamic as possible”, without having too much effect on the performance.

For instance, consider the following tabular data (this is very simplified, just to show the point):
Table “Model”
ModelName      Manufacturer
V70      Volvo
XC60      Volvo
Clio      Renault
Espace      Renault

Table “Car”
ModelName      Year      Color
V70      2009      Red
V70      2008      Black
XC60      2003      Silver
Clio      2001      Red
Espace      2002      Grey
Espace      2003      Black

This could generate the following XML-document:
<Models>
      <Model name="V70" manufacturer="Volvo">
            <Cars>
                  <Car year="2009" color="Red"/>
                  <Car year="2008" color="Black"/>
            </Cars>
      </Model>
      <Model name="XC60" manufacturer="Volvo">
            <Cars>
                  <Car year="2003" color="Silver"/>
            </Cars>
      </Model>
      ...      
</Models>

However, it could also be:

<Colors>
      <Color name="Red">
            <Cars>
                  <Car modelName ="V70" manufacturer = "Volvo" year = "2009" />
                  <Car modelName ="Clio" manufacturer = "Renault" year = "2001" />
            </Cars>
      </Color>
      <Color name="Black">
            <Cars>
                  <Car modelName ="V70" manufacturer = "Volvo" year = "2008" />
                  <Car modelName ="Espace" manufacturer = "Renault" year = "2003" />
            </Cars>
      </Color>
       ...
</Colors>

If the schema was fixed (say, the first example above), it would be easy to implement this using a traditional technique (using LinqToSql+LingToXml, for instance), thus “hard-coding” the schema into the code.

The performance would be good. However, it requires changing the code + recompiling + distributing the new DLL if the schema changes in the future.

A more dynamic approach would probably be to use XSLT-templates. Then, when the schema needs to be changed, the XSLT-template is “simply” modified according to the new schema, and this is then distributed.
Performance, however, would be worse as when using a more “hard-coded” technique.

Now, to my questions:
1.      I have a feeling I am missing something an option here. If I have the XSD-schema, and the mapping between the elements in the schema and the tabular data, shouldn’t there be a really easy way to generate the XML data?
2.      What would be my best option? I know there may be many answers to this, but please give me your ideas.

Thanks!
/Fredrik