THE first thing that strikes you about the 407 is its smile.
Straight out of the Ferrari design book, the big grille at the front suggests a class act - and the handsome replacement for the 406 doesn't disappoint.
The two-litre diesel engine powering the car I tested is compliant with Euro IV environmental standards avoiding the three per cent company car tax levy imposed on dirtier diesels.
More importantly it's got more grunt than an angry gorilla and uses fuel like a cactus uses water - on the combined urban/motorway cycle it averages 47.9 miles per gallon.
That doesn't mean it's a slow coach. It gets from 0-62mph in under ten seconds - via a six-speed manual gearbox - reaching a maximum speed of 129mph.
Other engine choices include four petrol power units - 1.8, 2.0, 2.2 and a 3.0 litre - and a 1.6-litre diesel.
As is usual with Peugeot motors there are plenty of goodies thrown in on the SE model.
Automatic windscreen wipers and headlights are included as are electrically folding door mirrors. A radio and single CD player are fitted, along with 17-inch alloy wheels, front fog lights and climate control with individual driver and front seat passenger adjustment.
The air conditioning system also has a humidity sensor detecting the onset of condensation and acting to correct it. The clever contraption also has a pollen filter.
Those with sticky fingers are warned off by an ultrasonic alarm and there's also remote control central locking from the bayonet-style key fob.
Safety is also handled competently as this 407 is fitted with an electronic stability programme that includes anti-lock brakes, an anti-skid function, emergency brake assist, and a new wheel brakeforce distribution with stability control allowing efficient correction of under and over-steering. The hazard warning lights are also automatically activated in the event of sharp deceleration.
The 407 has an abundance of airbags. These include front driver, passenger, side and curtain airbags as well as a steering column airbag.
The chassis uses a lightweight aluminium alloy to enhance performance and the advanced suspension gives outstanding handling and ride with excellent grip through corners.
The car is equally at home in town or on the motorway where road and wind noise are kept to a minimum making it a relaxing long-distance machine. The turbodiesel engine remains calm when cruising - only making itself heard when pushed to the maximum.
Climb into the car and the seats hug the body while a decent driving position is easy to achieve. All of the major controls are well positioned with the centre console offering a button-pusher's paradise while remaining relatively simple to operate.
The saloon shape is pleasing to look at but not as versatile as its hatchback rivals. Having said that, there's plenty of space for four adults to sit in comfort - while three can be coped with across the rear seat.
The boot is large with no suspension intrusions and two self-contained storage spaces offer extra capacity. In practical terms it means two large suitcases can be placed side by side or on top of one another.
The 407 is a worthy successor to the 406 and deserves to succeed in a highly competitive sector.
FAST FACTS:
Peugeot 407 SE HDI 136
Price: £17,700
Mechanical: 148bhp, 1997cc, 4-cylinder diesel engine driving front wheels via manual 6-spd gearbox.
Max speed: 129mph
0-60mph: 9.8 seconds
Combined mpg: 47.9
Insurance group: 11
CO2 emissions: 155g\km
BiK rating: 17%
Warranty: 3yrs/60,000, 12yrs paintwork, 12yrs anti-rust, 1yr breakdown