Watch out Audi! Peugeot is preparing to shift into top gear as
it puts the finishing touches to a thrilling new TT rival.

The car is set to go on sale in 2009, and insiders suggest it could cost around 20 per cent less than its German rival,
meaning entry-level models would be priced from £17,500.

Based loosely on the chassis of the new 308 hatchback, the two-plus-two coupé – likely to be called the 308 RC Z – would be front-wheel drive and closely resemble the similarly named concept car which debuted at the 2007 Frankfurt Motor Show.

Public response to the show car, which was created by a team led by design chief Jerome Gallix, has been massively positive. As a result, the firm is looking to put it into production, with some minor changes. The distinctive carbon fibre roof and flashy chromed A-pillars will be ditched, but the curvaceous rear windscreen could be retained.

While the prototype item fitted to the concept was an expensive one-off, the technology required to create such a shape is already being used to make the convex rear ‘screen fitted to Citroen’s C6 and forthcoming C5.

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