A two-litre saloon with plenty of passenger and luggage space, plus air-conditioning, twin front airbags and electrically operated fold-in door mirrors as standard, and a no-cost automatic transmission option - and change out of £11,000! Who's kidding?Well, Chrysler isn't. That's the price and specification of the latest Neon SE. Even if there isn't all that much change out of the £11,000, it undercuts plenty of less well-equipped 1.6-litre rivals.Most of the Neon's 1.5 million sales have been in North America, but Chrysler reckoned it was European enough in approach to justify putting in a right-hand drive production line. And the latest edition is more European still.The Neon has always looked unusual, mainly because of the cab forward design which makes it so roomy inside. One thing I don't like is that the view through the rear screen is restricted by a far too high window line. If ever a car needed a sensor to let you know, when reversing, how close you are to another vehicle, a tree, a wall or the neighbour's chihuahua, this is it.Fortunately, the curiously angled headlamps have been changed. So has the fascia, although it retains enough original elements to be out of the common run.Another odd thing about the previous model was that the non-retractable whippy aerial used to start lashing from side to side if it iced up in wintry weather. Chrysler has gone over to a conventional aerial, but I'm disappointed that you have to haul it up and down by hand. These things can get quite mucky.In a car which was always well packaged, the revised version has eased out still more head, hip and shoulder room. And the boot is even more capacious than before. A 60/40 split rear seat backrest is standard both on the SE and the more lavishly kitted-out LX.Chrysler has given the latest model a much firmer central structure. The SE uses disc front brakes and drums at the rear, while the LX features an all-disc system. It also has traction control as standard, as well as ABS and leather trim. Both cars have higher ground clearance than before, and the fitting of longer-travel suspension, with anti-roll bars front and rear, seems to have paid off.As for the automatic transmission option, this is an antique three-speeder which I certainly wouldn't bother with, although most UK customers do.With a two-litre engine in a lightish bodyshell, the Neon goes along pretty smartly. It doesn't feel much of a high-gear slogger, because there isn't an abundance of low-range torque, yet it's flexible enough to potter along at unexpectedly low speeds in fifth gear in slow-moving traffic. Just don't expect instant throttle response in those conditions. Good motorway car, though, and able to motor briskly along the back roads.The current Neon is a noticeable improvement on its predecessor. The design is maturing nicely, and there's little reason now to sniff at the car because it doesn't feel quite as solid as some of its European category rivals.Anyway, look at the price, for Pete's sake! And you have to have a soft spot for a car which has some plastic components made out of recycled soft drinks bottles.Second opinion: The Neon has the wrong engine. It only really works above 4000rpm, which is not how its owners will use it. Below that the performance is so weak that Chrysler might as well have used a 1.6-litre 8-valve. Otherwise not a bad car - a definite step forward from the old one, and better than the magazines usually give it credit for. David Finlay. Engine 1996cc, 4cylinders Power 131bhp @5600rpm Torque 131ib/ft @4600rpm Transmission 5 speed manual Fuel/CO2 35.8mpg / 185g/km Acceleration 0-62mph: 10.8sec Top speed 124mph Price From £10816.00 approx Release date 24/09/1999