##peu607.jpg --Right##PEUGEOT is preparing to step back into the lion's den with a new executive saloon, the 607. And it is doing so with a car based on a predecessor that failed to win favour in one of the toughest sectors of the British market. About 1,500 605s a year were registered here before the Coventry importer called a halt to a tarnished halo range dogged with reliability problems and depressing resale results. Towards the end of its run, CAP Monitor was awarding it RV percentage of new price predictions in the low to mid 20s after three years/60,000 miles (CAP Monitor November 1998 - SRDTi 4dr 22%, SRD Turbo 24%).

But there's a real air of optimism in the Peugeot camp about the 607, the car deemed such a technological leap forward that it has skipped a digit to lead a new generation of Peugeot 7s, the next of which will be a replacement for the 306. It may be bolted together on the 605 platform, but Peugeot's new chef de range has had the benefit of 196 weeks' development costing Fr3.7 billion (£360 million).

It will be launched in the UK in June with engines claiming new standards in power, economy and cleanliness, and a multiplexing system that does away with miles of wiring loom and allows electronic gadgetry to be installed and operated with confidence. The manufacturer also promises a pricing strategy designed to beat the Vauxhall Omega at its own game, and build quality and image sufficiently strong to chip away at prestige rivals such as Rover 75 and Audi A6. Supply will be controlled on a one out, one in basis at a holding compound and there will be manufacturer buy-back support to protect residuals, details of which are to be revealed closer to UK launch.

In Europe, the market for executive saloons is more than a million units a year. Peugeot wants 4% of that, which means production of 45,000 607s in 2001. In Britain the target is 2,000 in the first six months and 4,000-4,500 during its first full year. At the international press launch in Jordan, Peugeot's UK managing director Tod Evans said: 'We will be seeking to align with Omega on prices, but will also be looking to offer higher levels of equipment model to model.' On-the-road prices will be announced in May, but alignment with Vauxhall's volume executive should mean a £19,000 entry point.

Just two trims will be offered initially - S and SE - and while Peugeot was not forthcoming with exact specification, it is likely S will come fully loaded with digital air-conditioning, ABS, EBD, front, side and curtain airbags, and a few USPs for the class such as hazard warning lights which operate automatically under heavy braking and headlamps which turn on automatically in tunnels or at dusk.

Crucially, the 607 introduces new generation engines, the most important of which from the fleet perspective is a 2.2-litre common rail HDi diesel fitted with a filter to trap and destroy diesel smoke and harmful particulates. 'With this we have dispensed with the last possible reason to penalise diesel from a health point of view,' said Evans.

The new turbodiesel produces 139bhp at 4,000rpm and delivers greater torque (233lb-ft at 4,000rpm) than its 3.0-litre V6 210bhp stablemate. Carbon dioxide emissions are at a competitive 181g/km.

Although Peugeot would not be pushed on timing, this 2.2 is expected to filter down to 406 and 806, as will the new 2.2-litre, 160bhp 'balanced' petrol unit. The 607's revamped, uprated 3.0-litre 210bhp V6 has already made its way into the 406.

Later this year the French manufacturer may also introduce 2.0-litre petrol and 2.0-litre HDi engines for the 607 - Peugeot's European strategy is to launch into the heartland of its segment (that's £22,000-£26,000 in Britain) and then expand downwards. 'That's a habit we intend to follow here,' said Evans.

The first right-hand-drive 607s are expected to arrive in Britain in May for fleet appraisal. Some larger corporate customers and franchised dealers will be given the opportunity to test Peugeot's classy new executive saloon range in Jordan - the country chosen for the international press launch by virtue of mild winter climate, outstanding scenery and straight roads.

We drove 2.2 and 3.0-litre V6 petrol derivatives and the 2.2-litre HDi - the engine options lined up for launch here in June. Styling is family Peugeot at the front and A6-ish at the rear, the cabin is spacious, although headroom is not the best at the rear, and handling and ride are straight from the manufacturer's masterclass. While settings are more for comfort than sport, all variants are reassuringly stable at speed, smooth and rewarding to drive. The V6 has electronic variable dampers to firm things up further if required.

The four-speed tiptronic auto works comfortably with the petrol engines (HDi will have it as an option in September), although there are sacrifices to be made in economy and performance. Of the three engines, our choice is the common rail diesel. It's petrol quiet, torquey and, for an executive saloon, economical.