PEUGEOT has expanded the 607 range with two new entry-level engines, improving the car's carbon dioxide emissions, and cut prices of the rest of the range by up to £1,700, five months after the vehicle entered showrooms. The two tax-busting versions will be powered by a 138bhp 2.0-litre petrol engine and the 110bhp 2.0HDi diesel, both used in the 406.

The new models are aimed at company car drivers looking for a large, well-equipped car but keeping benefit-in-kind tax to a minimum following the change to an emissions-based regime next year. The new 2.0-litre car produces carbon dioxide at a rate of 205g/km, putting it in the 23% bracket for company car tax from April 2002/03. The rating for the diesel is to be confirmed, but Peugeot promises it will be below 165g/km, ensuring the 2.0HDi will fall into the 18% band under the first year of the new rules including the 3% supplement for diesel cars.

Like the 2.2HDi, the 2.0HDi will use a particulate filter to prevent diesel particulates escaping into the atmosphere. Production of the entry-level petrol version will begin in May, while the diesel will follow in July, priced at £18,195 and £19,395 on-the-road respectively. They will also be available in SE trim.

The rest of the range has undergone price cuts of between £700 and £1,700. New 607 prices: 2.0 £18,195; 2.0HDi £19,395; 2.2S £19,795; 2.2S auto £20,895; 2.2HDi S £20,995; 2.2HDi S auto £22,095; 3.0 V6 S £24,545; 2.0 SE £20,395; 2.0 HDi SE £21,595; 2.2SE £21,695; 2.2SE auto £22,795; 2.2HDi SE £22,895; 2.2HDi SE auto £23,995; 3.0 V6 SE auto £29,795.