Following on from the Crossfire coupe and cabriolet, based on the old SLK, the next step in Chrysler's rejuvenated assault on the UK market is this, the 300C.

Dig deep below its imposing body and you will find some of the underpinnings from the previous-generation Mercedes E-class. So how has Chrysler breathed new life into a nine-year-old design?

Firstly, by leaving the old E-class's conservative styling behind, it has created one of the most striking executive cars on the market. The nose is dominated by an enormous grille and sharply styled headlamps, but the most imposing visual element of the 300C is its high waistline and shallow window line, inspired by the old Rover P5 Coupe.

The designers have managed to take the stereotypical US saloon and make it both attractive and desirable - it will certainly be a real head-turner when it arrives over here in October 2005.

And the Yank appeal continues under the bonnet. The 300C is powered by a 5.7-litre V8 'Hemi' - a name originally derived from the hemispherical combustion chambers in classic American muscle-cars. In order to make it a viable proposition in the UK, Chrysler's engineers have added a clever system which shuts down four of the cylinders when they are not needed, such as when driving through town or when the accelerator is only partially opened while cruising, dramatically enhancing fuel consumption. The change from V8 to V4 takes only 40 milliseconds and is almost seamless, feeling like half a gearchange - most drivers won't even notice. Despite its hefty 1840kg weight, the hi-tech system allows the 300C to return 24.8mpg.

Turn the key and all eight cylinders burble into life, with just enough noise percolating the cabin to let the driver know that there's something special under the bonnet. Slot the Mercedes five-speed auto 'box into Drive, floor the throttle and the 334bhp V8 punches the 300C forwards with conviction; Chrysler claims it'll hit 60mph in 6.3 seconds. Thanks to slick gearchanges and 387lb ft of torque, gutsy performance is always on tap.

Having been tuned to European tastes, the 300C strikes a reasonable balance between ride and handling. However, it's not up to the standards of newer rivals such as the BMW 5-series and the latest Mercedes E-class, and the lifeless steering doesn't inspire the driver to use all of the power on a twisty road. Despite its strong performance, this Chrysler is more of a high-speed cruiser than a sports saloon.

So can you cruise in comfort? Slip into the 300C's rather unsupportive leather seats and you can't help but feel a bit disappointed. After the drama of the exterior the cabin is a bit dull, and while the layout is fine, a more distinctive design would help its cause.

In the UK, the 5.7-litre flagship will be available in right-hand drive form alongside 2.7- and 3.5-litre V6s, while the diesel from the current Mercedes E270 CDI is also likely to join the range. An estate model, badged Touring, has been confirmed for production in left-hand-drive European markets but no decision has been taken on this car for the UK. Prices are yet to be announced, but expect the 300C to undercut its German rivals. Chrysler is aiming to align the 300C's pricing with that of the Volvo S80, which means the V8 should cost about ΂£33,000.

You might be able to trace some of its parts back to the mid-'90s, but the combination of hot-rod looks and V8 engine make the 300C a characterful, if not dynamically rewarding, car to drive.