The cars are:
Citroen C4 Picasso
Fiat Grande Punto
A record 41 vehicles were eligible for the award (all launched in the last 12 months) which were then reduced to eight finalists in a first vote by the 58 members of the Car of the Year Jury.
The Car of the Year jury is made up of 58 journalists from 22 countries. Their objective is to choose the most outstanding new car to go on sale in the past 12 months. Jurors vote twice, first to select a shortlist from the new cars launched in Europe, then again to choose the winner. Last year's winner was the Renault Clio.
The Car of the Year 2007 winner will be announced on November 13.
UK members of the Car of the Year jury are Steve Cropley (Autocar), Andrew English (Daily Telegraph), Ray Hutton (Sunday Times), Paul Horrell (Top Gear magazine), John Simister (The Independent) and David Williams (Evening Standard).
The 2007 AM Awards: We are now accepting online entries. This is your chance to be the best in the industry. You have until November 10 to make your voice heard. Click here to enter.