Fleets will have to wait for Euro IV diesels

PEUGEOT will not offer UK company car drivers a diesel car that can avoid the three percentage point penalty for diesel under the new company car tax system until 2003.

The move to Euro IV diesels is likely to coincide with its next generation of common rail diesels, being jointly developed with Ford and sister company Citroen.

Jean-Louis Maigret, 307 product development team member, said the company will achieve Euro IV standards for diesel well ahead of the 2005 deadline, and increased demand for Euro IV in individual markets such as the UK has led to concerted efforts to speed up development schedules.

He said: 'We are quite close to Euro IV but still have more work to do. If there are specific demands in individual countries we would be able to meet them with the new generation of engines.

'But we don't want to achieve it too soon to push governments into introducing more stringent standards by meeting their demands too early.'