THERE was never any doubt that the new Peugeot 207 would be good-looking and fun to drive. It was, after all, from the same company that gave us the 205 GTi.

What the 207 had to achieve, however, was a successful marriage of French chic with German build quality.

If it could do that then Peugeot would have another winner.

It certainly had the looks.

Everyone who laid eyes on the car at launch decreed that it was one of the better hatchbacks available for less than £10,000.

But there needs to be more than just good looks this time.

Although the 205 GTi was a stunning little car to drive, anyone who owned one couldn't be blind to its faults, which were chiefly build-quality related.

So Peugeot has really set about the 207 with a vengeance and one look inside tells you where the budget has been spent.

The uncomfortable driving position and tacky plastics have been dumped. In a 207 anyone can get comfortable behind the chunky steering wheel no matter what their shape and size.

Peugeot engineers say this is because they developed both left and right-hand drive cars at the same time so there were no compromises with the UK model.

The wipers have the correct RHD sweep (no more dirty blind spots), the pedals are straight ahead and the steering adjusts for reach as well as height. Shorties can also adjust the seat height by means of a simple ratchet.

Some models have hollowedout front seat backs that liberate extra room for rear-seat passengers. In cars in this class every little helps. Front or back, the headroom is excellent and the boot is big enough for a family holiday.

Peugeot sticks the spare inside the car beneath the boot, rather than underneath the chassis. A small change, granted, but one you'll be glad of should the need to change a wheel ever arise.

Just ask someone who has ever tried to prise out a spare tyre coated with years of road muck from beneath his or her car.

There's a new feeling of solidity about the 207 that suggests it has been built up to do a job and not down to a price.

The plastics are all soft-feel, tactile stuff and the switchgear operates with a distinctly Germanic crispness.

Equipment levels are well up to the class standard. Every model gets four airbags, electric front windows, a CD player and fullyadjustable seating.

Options available on more expensive models include air-conditioning, curtain airbags, a faintly anachronistic sunroo (once the salesman's favourite but surely everyone now just has air conditioning? ), alloy wheels, satellite navigation and automatic wipers.

The new-found quality adds a bit of beef to the 207's kerb weight so models don't feel as peppy as the out-going 206.

Peugeot has tinkered with the gear ratios to help mask the extra effort needed of its smaller engines and fuel economy doesn't appear to have suffered.

Interestingly, the 1.4-litre 90bhp car felt more eager than the larger 1.6-litre petrol that felt a bit languid, especially at fast Aroad speeds.

More engines are coming, specifically a new 1.6 that has been co-developed with BMW and will see service in the next generation Minis as well.

Every small car has to be a compromise between space, pace and practicality. Peugeot fans will be pleased to hear that the 207 hits its targets in just about every area.

Buyers looking to purchase a small car should get along to their local Peugeot dealer and find out what all the fuss is about.

Specification Engine: 2.2-litre turbo diesel Max power:136bhp Top speed: 122mph 0-60mph: 9.4 seconds Combined fuel consumption: 44.8mpg For convenience: Power steering, MP3 CD player, electric windows, leather upholstery, climate control, trip computer, flexible seven seat interior. For safety: Nine airbags, anti-lock brakes.