MEET the future of the motor industry... On sale from this month, Mitsubishi's new Outlander is in many respects the most significant new development in car making since the introduction of the production line.

In itself the Outlander breaks no new ground, but what it represents is a major change in the way cars are developed and brought into production.

Building block for the Outlander is a "global" platform which has been developed in conjunction with Daimler Chrysler and it is one which is being used to underpin a large number of vehicles that are on their way to the UK.

As well as the Outlander, this platform will be used on the new Mitsubishi Lancer saloon while Daimler Chrysler uses it for five products including the Dodge Caliber and Jeep Compass.

In addition, the Outlander has been sold to Peugeot and Citroen and will appear in thin disguise later this year as respectively the Peugeot 4007 and Citroen C-Crosser.

Although they will get their individual corporate make-overs, the Outlander, 4007 and C-Crosser are all being made in Japan by Mitsubishi on the same production line.

The benefit to everyone involved is that development costs are shared and therefore vastly reduced for each car-maker, something which should help ensure the long-term viability of each brand.

But this is just the beginning. Outlander initially doesn't use a Mitsubishi engine - instead, they have slotted in a two-litre turbo-diesel engine designed and developed by Volkswagen (Peugeot and Citroen will use their own engines in their SUVs).

This is a well-tried and tested unit which is already widely used in the Volkswagen Group's product ranges (Seat, Skoda, Audi and VW).

Later on, Mitsubishi will give the new Outlander a more powerful 158bhp 2.2 Di-D Turbo Diesel, developed by Peugeot and a brand-new 2.4 litre 168bhp MIVEC 2.4 litre "World" petrol engine which it has developed in conjunction with Daimler Chrysler and Hyundai.

What all this means is that in the future, rather than having to develop their own cars in isolation and at vast expense, co-operating manufacturers will be able to share the expertise among themselves and, more importantly, the cost.

Having said the Outlander is a significant vehicle, has this combined effort actually worked?

The answer is a resounding yes. Outlander definitely does what it sets out to achieve - offer a highly capable sports utility that has more of a car-like feel than a conventional 4x4.

Significantly better than the outgoing Outlander, which in many respects looked and felt like a compromise, the new name carrier bears little similarity and now has seven seats - an added attraction in a class where the normal is five seats.

Visually, the bigger second generation Outlander carries a number of design cues from the 2002 Pajero Evo Concept and has a muscular appearance from the Mount Fuji grille, deep bumpers with skid plate, bold flared wheel arches, slash-back rear quarter light, with wrap-around LED tail lights to the integrated roof rails.

A useful addition is the split tailgate with a lightweight top portion and a fold-down bottom section (which sits 600mm above the ground) that is capable of supporting 200kg, allowing luggage to be placed on it while loading.

Mitsubishi interiors have never been great but Outlander isn't half bad with a nice combination of solid plastics (still a bit glossy for my taste) and satin finish metal-effect trimming that gives it a technical feel.

The middle row of seats have a one-step fold and tumble action that gets them out of the way quickly and simply - an operation that can be done via a useful electric button in the boot - so users never have to actually touch the seats.

The Hide&Seat third row (for children only) on the seven-seat versions provides a two-seater forward-facing bench which can be stored under the floor when not needed.

This allows the luggage space to vary in the five-seater versions from 541 litres (402 litres in the previous Outlander and 200 litres in the new seven-seater) to 882 litres to the roof line and then expand to 1691 litres with the rear seats folded.

In the UK, Mitsubishi offers the Outlander in three trim levels, Equippe, Warrior and Elegance.

All come with items such as alarm and keyless entry, electric windows and door mirrors, CD/ MP3 audio and air conditioning.

Warrior models (which are expected to account for more than half of all sales) gain the Hide&Seat third row of seats, privacy glass, 18-inch wheels, cruise control, Bluetooth hands- free kit and Warrior cosmetic enhancements.

Topping the range, the Elegance gets electrically operated and heated leather seats, the Mitsubishi Multi-Communication System plus a Rockford Fosgate 650W nine-speaker audio system with 30GB hard disc drive satellite navigation with music server that can store up to 2000 song tracks on its memory.

As previously mentioned, the introductory engine is the VW- developed 1968cc intercooled four-cylinder turbo diesel which has enough power to accelerate to 62mph in a very acceptable 10.8 seconds and top out at 116mph with fuel consumption 40.9mpg on the combined cycle and emissions at 183 g/km.

It has sufficient grunt to make light of the weight of the Outlander and should prove to be the engine of choice for those who want to tow.

Transferring power to the wheels is an Aisin AW supplied six-speed manual transmission with a nice action and a dual mass flywheel to dampen shift vibration and noise.

As it's a Mitsubishi SUV, the Outlander comes installed with an electronically controlled four-wheel-drive system with the choice of 2WD, 4WD Auto (power being transferred up to a 70:30 front to rear split) and 4WD Lock which can be operated on the move using an illuminated dial positioned between the front seats.

While Mitsubishi used a British Army tank testing ground on Salisbury Plain for the British press corps launch of Outlander (a situation in which it excelled, as you would expect from Mitsubishi), they are keen to emphasise that this isn't the sort of terrain they expect it to tackle on a regular basis.

Instead, the four-wheel-drive function is there to enhance safety and on-road dynamics and to this is added active stability and traction control.

Outlander rides on a proven MacPherson front strut and independent multi-link rear suspension with longer travel than on a conventional passenger car.

Mitsubishi claims it has car-like handling and ride characteristics, but you still know you are in an SUV because of the suspension travel, although it has to be admitted that much of the 4x4 lean has been illiminated and the steering is lighter than on many other 4x4s.

With prices ranging from £19,449 to £24,749, Mitsubishi has priced new Outlander far enough away from its own 4x4 products (having now stopped making the Shogun Sport and Pinin) so that they don't clash - the aim being to attract new customers and in a market still eager for soft-roaders the new version should do better than its predecessor.

Although it looks unassuming, Outlander is the future of car co-operation.