Peugeot today announced it is reducing the recommended list prices and improving the specifications of a selection of its new car range - including the newly-launched 607 executive model - without the traditional 'unbundling' of finance and cash-back offers.

Effective from December 1, the value of the price reductions/specification enhancements is improved by an average of £650 on a Peugeot 206 up to £1,525 on a 406.

##Tod Evans(small)--left## Tod Evans (left), Peugeot UK managing director, said: "Peugeot led the volume car market with the introduction of three years warranty cover at the beginning of this year on all models.

"We were recently voted 'Manufacturer of the year' by Automotive Management for demonstrating the greatest innovation in caring for our customers.

"Today's announcement will ensure we continue to provide a class leading service to our customers."

In October Peugeot sales were up 4.05% year-on-year, while it biggest rivals Ford, Vauxhall, Renault and Volkswagen saw sales drop by up to almost 8%.

Peugeot will continue to promote offers like one year's free insurance on most 106 and 206 models together with finance deals including 0% offers.

The changes to price and spec are:

  • 106 Independence down from £6,995 to £6,495
  • 206 LX 1.1 A/C down from £9,625 to £8,995 with radio/CD player now standard
  • 406 LX HDi 90bhp down from £16,295 to £15,495 with satellite navigation as standard
  • 607 2.2S down from £22,995 to £21,195