PEUGEOT rattled more than a few motoring cages when the 405 range appeared back in 1987.

A good product from the word go, the car took on Ford and Vauxhall's medium-sized saloons, the Sierra and Cavalier, and quickly won legions of fans.

That remarkably popular range of very fine drivers' cars did good business, and evolved through the equally-enjoyable 406 into today's visually-stunning 407 (pictured).

In its short sales life, the 407 has picked up awards galore, which is hardly surprising for a Peugeot of such a fine pedigree.

But although the 407 has looks and cabin quality that other makers would die for, the car's driving dynamics haven't made the same improvement.

And why Peugeot has chosen to stick with the saloon formula in what is a near-hatchback shape is a mystery.

Yes, saloons do fare better on Peugeot's home ground of mainland Europe than they do in the UK, but big hatchbacks are heaven for families and sales reps alike when it comes to load versatility.

Fair enough, the new 407 SW, one of the slickest estate shapes around, is a good go-between for hatch fans, but it's still an estate all the same. The 407 saloon's highly-refined interior is a very noticeable improvement on the 406's quality, and the cabin ergonomics further justify this car as award-winning material.

The ride and drive, though, is good but not great. The reworked chassis, front axle and multi-arm rear suspension do a good job of keeping the saloon steady and ready for corners, but the flow of information from tyre surface through to driver is mixed, depending on travel rate. It thuds around a bit over the bumps, and the steering system doesn't come alive until the engine speed increases.

Over the 50mph mark, the two-litre HDi will stretch the laws of gravity through the twists and turns, but there's a certain disjointed feeling to it around town. The seating position doesn't help - despite good adjustment, there's still the sensation of wanting to be higher up, perhaps in the hope that a better view will compensate for that iffy low-down feedback.

The diesel drives straight through the Euro emissions rules. It's clean and green, and mpg figures cannot fail to please. With a top speed of 129mph and a good (for the size) nought-to-62mph sprint time of 9.8 seconds, you can get 57.6 miles to the gallon going on the country cycle.

The six-speed manual gearbox is a good match for the four-cylinder, 1997cc unit's hefty 240lb/ft of torque and 136bhp output.

Peugeot's pricing and equipment structure matches this car's main rivals, and the strong three-pronged attack on style, equipment, and decent driving dynamics in the 407 SV two-litre HDi makes it good value for £18,700.

That buys stacks of safety, seamless security, electric and electronic goodies galore, a true luxury look and enough quality and depth in the exterior finish to tempt buyers away from pricier German marques.

What the Germans usually charge extra for all comes as standard in the SV version.

Heading the list are two electric front seats, the rear parking audio warning, electric, and remote-folding, door mirrors, automatic windscreen wipers and auto headlights, trip computer, front fog lights and electronic rear door child safety locks.

What Peugeot did charge extra for on this test car were the metallic paint finish (£325), and the colour-screen satnav and satellite phone system (£1,350). The latter was linked in with the radio, CD, and autochanger.

Keeping passengers safe and secure are driver, passenger and side curtain airbags, a steering column airbag, electronic stability, remote central locking with deadlocks and a top-notch alarm system.

All it needs now is for Peugeot to tweak a tad more life into the fidgety road feedback to take this sizeable, very comfortable saloon back to the glory years of the 405.

For more information, contact Viking Peugeot in Basingstoke on 01256 697700.