The latest Picasso is based on the admired C4 and, as a medium-sized MPV, it is stylish and clearly aimed at the luxury end of the market. The new creation is due in January and is slotted in between the smaller Xsara Picasso and the bigger C8 wagon. It beats both on style but then that's not always a winner . . .the C4 car version is a slow seller even with good specification.

The reason, or part of it, is Citroen's policy of large discounts on their products, even launch models. This has failed to bring the desired result and at last the policy is to be dropped.

The admission that this has not worked comes as no surprise but Paul Cregan, Citroen MD in Gallic Distributors, promises some surprising news in the new year. Could it be price reductions in some shape or form are on the way? We eagerly await a midNovember announcement.

The growth of compact MPV sales is set to continue at the expense of larger versions as motorists become more aware of fuel costs and emission levels from big engines. So the C4 Picasso comes at a good time.

The only danger is that, with a good level of specification . . . even on the entry-level version . . . and good use of space, it will eat into sales of the smaller and bigger MPV offerings from Citroen.

Prices start at around 28,000.

That use of space is the new Picasso's main virtue. There is lots of legroom for the first two rows of seats and predictably less for passengers six and seven in the rear seats. Visibility is excellent, with 6.4sq m of glass if the panoramic windscreen and glass roof are included. The designers say this is the "visiospace" concept where maximum vision and space are created to make occupants feel more relaxed. To compensate for the extra glass area up front, the huge sun visors can slide up and down (an idea borrowed from helicopter designs) to give maximum protection from the sun. That is just one of the many pieces of advanced technology used in the new Picasso. Also available are:

>> A mini fridge in the dash that can hold a 1.5-litre bottle and two 0.5-litre bottles.

>> A perfume dispenser to create a pleasant atmosphere through the air-conditioning.

>> Clever and easy-to-use seatfolding mechanisms.

>> A device that nudges your behind if you stray out of your lane without giving a signal.

>> An optional ultra-sonic parking space sensor that calculates if your Picasso will fit into the space you have pulled up at.

>> Hill Assist . . . no more rolling back on hill starts.

>> Seven airbags including knee airbags and a five-star Euro Ncap rating.

>> Laminated side windows which don't shatter.

>> Automatic vehicle lock-up which work 30 seconds after you leave (if you have forgotten to activate the locks).

>> Reading lights on table tops at the rear of front seats.

>> Optional second rear-view mirror which allows all activity within the vehicle to be visible.

The list goes on . . . a hi-fi and video pack, cruise control as standard and an optional sixspeed electronic gearbox. This is a particularly nice feature. In automatic mode the gearshifts are managed electronically and fuel economy is better than in manual. But the driver has the option to over-ride this by using the fingertip paddles behind the steering wheel at any time . . . such as emergency overtaking.

The top-selling engine here will be the 1.8-litre petrol 16-valve 127 bhp, a unit that is already fitted to the C5. It is responsive at low revs and comes with a fivespeed manual transmission.

Disappointingly, the base model will not have air conditioning.

The majority of sales will involve the 1.8-litre petrol engine . . . up to 80%, with the 1.6 HDi litre diesel 110 php engine taking up the majority of the remainder of sales. This will have the option of the automatic transmission for 2,000 extra.

There are two-litre 143 bhp and two-litre 138 bhp petrol and diesel alternatives. Competition wil come from the Ford S-MAX, Renault Grand Scenic and Opel Zafira.