MG ZT CDTi

We're big fans of the ZT range, and can see the diesel engine makes sense for company car drivers who have to keep an eye on the CO2 figures. It's a fine tourer, and the chassis is more than a match for German rivals. But even with the power upgrade this MG simply doesn't have the punch we've come to expect from new oil-burning sporty saloons.

Back in the days of Ford Sierras, Austin Montegos and Vauxhall Cavaliers, the badge on the bootlid told all. It wasn't simply the engine size displayed in chrome, but also the trim and even the extras. The neighbours could jealously read that you had a 2.0 GLX 5-Speed ABS.

Times have changed, and so has the labelling. Take this new MG for example. Sure, the ZT logo on the rear tells you the model name, but what engine is under that bonnet? Those 18-inch wheels and aggressive body-kit suggest it's at least the 190bhp V6 or maybe even the new 320bhp V8. But start it up on a cold morning, and the people next door will know exactly what powers this ZT - it's a diesel.

It still surprises many that MG has put this most sensible of engines in a range promoted as being the rebel's choice, but market forces are hard to argue with. Company car drivers now want tax-saving CO2 emissions to go with their "high fat, full caffeine, maximum strength" performance saloons.

There are concessions to sportiness, though. For starters, the engine is the acclaimed 2.0-litre unit from BMW, although in standard form it produces a weedy-sounding 116bhp - certainly not enough to justify the bodykit. However, for £490, your dealer will fiddle with the management system and boost the power to a more healthy 131bhp, making it competitive with the likes of Audi's A4 TDI 130bhp. The tweaks don't affect the C02 or economy, with the same 163g/100km and 48.8mpg as the unfettled model.

Once the start-up clatter has subsided, the unit is acceptably refined and cruising is effortless. But unlike its VW-engined rivals, the power delivery is even - without the sudden wave of torque above 2,000 rpm that then dies off dramatically at 4,000rpm.

However, while A4 or Passat drivers can use their cars' tidal pulling power to outpace hot hatches, the MG needs hard work to keep up with a warm supermini. Which is a shame, as the ZT handles well. The model we drove has the optional sports suspension, and despite the 20 per cent stiffer springs and low profile tyres, it rides remarkably smoothly. Feedback through the steering and brakes is fine, too. The only black marks are a heavy clutch and a lack of room in the driver's footwell, which means anyone with big feet will snag their shoes on the bottom of the facia panel.

However, for some, the fact the MG looks so good will more than compensate for the ZT's relative lack of pace. The bodykit is purposeful but not vulgar, and the interior looks smart, too. Unfortunately, the BMW-sourced hi-fi has been dumped in favour of a tacky and fiddly-to-use Kenwood unit.

The tailor-made stereo isn't the only casualty of MG's divorce with BMW. We can't help but think how good this car could have been with the 3.0-litre, six-cylinder diesel from the 3-Series. Now that would have made even our German neighbours jealous.