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Peugeot got rid of its case of the uglies with the new 405 sedan for1989. Perhaps there`s hope for Saab and Volvo.

The 405 is a styling charmer, something of an aerodynamic cross between a Mercury Sable and a Merkur Scorpio.

Until the 405, anything bearing the Peugeot name had the artistry of apaint-by-number set. Of course, styling was not a primary concern to anautomaker concentrating on diesel-powered cars.

With the 405 added to the 505, Peugeot is offering more than one car line in the U.S. for the first time in 10 years. And the focus is on gasolineengines, not oil burners.

The 405 is offered in three series, the DL, S and top-of-the-line Mi 16.All feature front-wheel drive, four-wheel independent suspension, powerbrakes, power steering, steel-belted Michelin radial tires, air conditioningand power door locks.

The S and Mi 16 add a power slide/tilt moonroof, infrared remote controllocking, heated front seats and cruise control. The Mi 16 further adds leatherupholstery; antitheft AM-FM stereo with cassette and television/weather bands;fog lamps; power windows; heated sideview mirrors; electric rear windowdefogger; and a rear deck spoiler.

One notable gimmick in the Mi 16 we drove was a trap door behind the rear seat center armrest that provides access to the trunk and allows you to fit a pair of skis inside and still close the deck lid.

The four-door sedan is built on a 105-inch wheelbase and is 177.7 incheslong, roughly the size of a Chevy Celebrity, but with what appears to be much more room.

The DL and S are powered by a 110-horsepower, 1.9-liter, 4-cylinderengine. The Mi 16 we test drove features a 16-valve, double-overhead-cam, 150-h.p. version of that engine derived from Peugeot racing. The 1.9 is teamedwith a 5-speed in all three cars. Automatic is optional in the DL and S butisn`t available in the Mi 16.

The 16-valve engine`s 150 h.p. rating didn`t seem to live up to theboast. The 405 did well in moving off the line and there is more pep than inthe old diesel days, but it didn`t seem to build as much momentum as expected in moving up through the gears.

The 0-to-60 m.p.h. performance was rather ordinary, but ride and handling were above average. Good road manners from four-wheel independent suspension, 8-valve shock absorbers and antisway and torsion bars. And all suspensioncomponents are made of forged, zinc-plated steel to fight corrosion.

Antilock brakes were notable by their absence. They will be added as anoption in a touring package shortly after the first of the year.

The DL starts at $14,500 with 5-speed, $15,150 with automatic; the S$17,700 with 5-speed, $18,350 with automatic; and the Mi 16 with 5-speed only at $20,700.

On a recent visit to Chicago, Pascal Henault, president of Peugeot Motors of America Inc., the U.S. distributor, said the French automaker expects tosell 15,000 405s and 3,000 505s in 1989 for a total of 18,000, up from 10,500 505s only in 1988.

“We aren`t looking to sell 200,000 cars annually in U.S. Our goal is tosell 40,000 to 50,000 cars in the U.S. in the `90s, decent volume without highrisk,“ he said.

“We have a lot to overcome with image,“ he said. “In the early `80s,we sold lots of diesels and look what happened to diesels. We`ve been out ofdiesels since the end of 1986. We`ve had to make a radical change to gasengines.“