BMW 3-Series

The long wait for the arrival of the 320Cd has been well worth it. As well as delivering good performance, it makes particular sense for company car drivers, thanks to its low CO2 figures and Euro IV-compliant engine. Impressive in and out of town, the new coup� is certain to give its rivals a run for their money.

Announced in July, the four-cylinder 150bhp 320Cd paves the way for the more powerful six-cylinder 204bhp 330Cd, due to arrive in March, as BMW grows a new stable of diesel-powered driver-oriented cars.

With a top speed of 137mph and a 0-60mph time of 8.8 seconds, the newcomer is no slouch. But it's also worth remembering that the 320Cd is the first BMW diesel to be sold in the UK to comply with Euro IV emissions rules, offering further BiK (benefit in kind) tax discounts to company car drivers.

Facelifted for 2003, the new coupe also debuts changes to the bonnet, grille and bumper, and has revamped front and rear lights. Although most of the changes were originally introduced on saloon and Touring models over a year ago, the coup� maintains its unique look, not only with its distinctive body, but also with a revised boot grab handle and redesigned rear bumper complete with standard parking sensors.

But despite all of these upgrades, the driving experience is still central to the BMW's appeal. Does the introduction of a diesel spoil this beyond repair? Not in our opinion. Turn the ignition key and the oil-burner's glow plugs warm within a split second. Sure, the engine sounds vocal while it chatters into life, but it settles easily to a silky, well insulated idle.

The thick-rimmed steering wheel, low-slung bucket seats and clearly laid out instruments lend the cabin a sporty feel, while the new six-speed gearbox has a slick change between ratios.

With 330Nm of torque on tap, the engine feels impressively strong, particularly at low revs, and offers a rich exhaust note that disguises its diesel origins. Although there is some turbo lag lower in the range, the car has plenty of urge from 2,000rpm, delivering smooth, consistent acceleration.

Around town, the gear ratios are long enough to keep shifts to a minimum, while on the open road, the car proves an impressive cruiser. The suspension, lowered by 15mm over the standard car, is relatively supple, and keeps body roll to a minimum in corners. Although it will understeer if you really attack a bend, it is possible to make the rear-wheel-drive machine oversteer.

Ultimately, there can be no argument that the new 320Cd is anything other than an impressive drivers' car. On top of that, it offers decent combined fuel economy of 49.6mpg and produces only 153g/km of CO2. Ownership is a decision that can satisfy both your heart and your head.