ROVER will launch an attack on the executive market when it replaces the 600 and 800 ranges with a new model early in 1999 - just a few months after Jaguar's new small car makes its debut. The upmarket saloon - the first Rover to be developed completely under the ownership of BMW - will be followed by an estate model.

Codenamed R40, the new vehicle will draw inspiration from the great Rover saloons of the 1960s, offering a uniquely English feel, say insiders, although it will be thoroughly up-to-date in terms of styling, safety, running costs and performance. Engineers and designers are said to be confident of producing a vehicle which will be good enough to compete with the new small Jaguar, signalling a further move upmarket for Rover.

The small Jaguar, codenamed X200, will compete with BMW's 5-series. Early sightings suggest it will resemble a Mazda Xedos 6 with four headlamps in the style of a Mercedes-Benz E-class.