BMW has begun the introduction of Euro IV-compliant diesels with all new 320d models dodging the 3% benefit-in-kind tax supplement on diesel cars.

The move means 320d, 320Cd and 320td drivers could save up to £290 a year in company car tax compared with Euro III versions of the engine. Meanwhile, Euro IV versions of BMW's six-cylinder diesels in the 3- and 5-series will be launched in March 2004.

Adjustments to the engine have enabled 3-series diesels to reach the stringent emissions requirements, while 5-series diesels will feature a new particle filter which works with no impact on performance, fuel consumption or carbon dioxide emissions.

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