Volkswagen Passat

Priced at ί¿½29,900 - ί¿½10,000 less than its main rival, the BMW 540i - and powered by an innovative 4.0-litre 'W' formation engine, it promises to pre- sent a stiff challenge to the 5-Series and Mercedes' E-Class. But there's more at stake than topping sales charts. If this eight-cylinder flagship fails to convince, it will go down as one of the biggest flops in motoring history. But thankfully, the Passat has a flying start. Its styling is already a hit with buyers, and the W8's beautiful 17-inch alloy wheels, bi-xenon headlamps and purposeful-looking quad tailpipes lift it into a new dimension visually.

The differences are subtle, but then that's what gives the newcomer its high class, but understated, appeal. Beneath the bonnet beats four litres and 32 valves of muscle, pumping out 275bhp and 370Nm of torque at 2,750rpm.

Even weighed down by the firm's 4Motion AWD system and four-door saloon body, this translates into serious straight-line performance. In six-speed manual form, the W8 will sprint from 0-62mph in 6.5 seconds and go on to 155mph. If you don't mind paying an extra ί¿½1,425 and blunting the acceleration, you can also opt for the smooth Tiptronic auto gearbox on our test car.

As with all Passats, the W8 has an excellent driving position and cabin layout. It also has the Audi A8's leather-trimmed electric seats, wood panels and distinctive instruments. On the move, outside noise is virtually imperceptible and you can only appreciate the W8's chesty snarl with the windows down. What really comes as a surprise, though, is the competence displayed by the car's stiffened chassis.

Stung by criticism of the vehicle's dynamics at its world launch (Issue 659), engineers retuned springs and dampers to give a more sporty drive. Body roll is now negligible in bends, and the car grips keenly in all weather conditions, even displaying an element of throttle ad-justability with the ESP traction control switched off. And best of all, this has been achieved without ruining the Passat's compliant ride.

In the Passat W8, Volkswagen has finally created a truly sporty car. It may lack the driver appeal and clout of a BMW, but it does make the ί¿½40,110 540i look embarrassingly expensive.

At a glance

* Flagship Passat W8 now on sale in UK, priced ί¿½29,900

* Its 4.0-litre engine pumps out 275bhp and 370Nm of torque