I have heard this story before, and not too long ago. Honda says its new Accord, due here in March, is not a mainstream rival to Mondeos, Vectras and what-have-yous. It has gone up in the world and now invites comparison with such premium marques as Audi and BMW, even Mercedes-Benz.

Saab told us the same thing at the recent introduction of the new 9-3. What it means, of course, is that the customer will pay more money and the manufacturer will make more profit. The fact is that a BMW costs scarcely any more to make than a Ford or Vauxhall of the same size and type. It is the power of the badge, established by years of consistent image-building, that commands the higher price.

So Honda, like Saab, can direct the presentation, performance and dynamics to match models from the prestige brands but still find that it is not on the same shopping list. This, I fear, is what will happen with the new Accord. And that's a pity.

In the quality of its engineering, Honda is up there with Mercedes. It makes some of the world's best four-cylinder engines. It doesn't cut corners to save money: Accords have sophisticated double wishbone suspension instead of the simpler and cheaper struts used by others, BMW included.

The new Accord, a little over 2½ in longer than the current model, is available only as a four-door saloon. An estate will come later but there will not be a hatchback — Honda thinks that is too downmarket (as does Saab). Nor will there be a 1.8 litre entry model. The choice is between two versions of the latest i-VTEC four-cylinder engine: a 2 litre producing 155bhp and a 2.4 with an impressive 190bhp. As well as replacing the current Accord the new model will play the role of the Legend, Honda's unloved, rarely seen luxury flagship.

My introduction to the new Accord was at Honda's test track on Hokkaido, the northern island of Japan. It is no coincidence that this facility reproduces part of the NŸrburgring in Germany, the famous 13-mile old grand prix circuit that the German manufacturers use for testing. So it was a better track than most for assessing a road car that is supposed to have a sporty character.

I doubt that any front-wheel-drive competitor would have tackled this helter-skelter track, with all its twists and turns, crests and dips, with more confidence. Honda's engineers used the Audi A4 as their benchmark and I would guess that in its blend of ride and handling the new Accord surpasses the A4 — but I would also expect a rear-drive BMW 3-series to be better still.

Both engines are sweet and smooth (they have balancer shafts to damp out vibrations) and the five-speed manual and automatic gearboxes also deserve high marks. The performance of the new Accord is similar to the opposition's but the fuel consumption and CO2 rating of the 2 litre are lower than other petrol engines of this size; an average 37.7mpg and 179g/km. For the British company car market there will be a further economy version with air conditioning and some other equipment removed to reduce weight, which will save more money.

I can't tell you exactly how much because Honda UK hasn't yet decided how to price it. The realistic competitors are the other mid-size saloons desperately seeking premium status — Alfa Romeo 156, Volvo S40 and Volkswagen Passat — which suggests the Accord will start at about £16,500.

There is not much to choose between these cars in accommodation. Honda has given the new Accord more generous front seats and claims more room in the back than the current model (but if that is so, it's not a lot). The interior has been smartened up but still doesn't have the class of the Passat.

Does this new Accord look the part? The lines are clean and wedgy and from some angles it resembles an Audi A4 or the Alfa 156. But then the front is almost identical to the new Mazda 6. Honda admits that is unfortunate; it doesn't mind being compared with Audi and Alfa but considers itself a cut above Mazda.

Vital statistics

Engine type 4-cylinder, 1998cc
Power 155bhp @ 6000rpm
Torque 114lb.ft @ 4500rpm
Transmission Five-speed manual or automatic
Suspension (front and rear) double wishbones, coil springs
Tyres 205/55 16
Fuel (combined cycle) 37.7mpg
0 to 60mph 9.2sec
Top speed 137mph
Insurance tba
Price £16,500 (approx)
Verdict Well built and engineered. Wants to join the smart set, nearly makes it

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