Volvo S40

This central console 'floats' away from the rest of the dashboard and is only a couple of centimetres thick, meaning there's a cubbyhole behind. It gives the interior a spacious feel and, in aluminum at least, makes the central console look like an expensive Bang & Olufsen stereo. But it's not just style over substance - the car's hi-fi system is a joy and the sound coming from the speakers is crystal clear at any volume.

While the dash is much improved, not everything has been touched by over-zealous designers. Volvo is famed for its big, squashy seats and, thankfully, the S40's are eminently comfy. There's no lack of space front or rear and four adults can be carried with ease.

Existing Volvo owners will be familiar with the engines fitted to the S40. They're the normally aspirated, 105 and 128kW, 2.4-litre jobs; the five-cylinder, 165kW, turbo 2.5; plus the 102kW, two-litre four-cylinder diesel. Next year 1.8-litre petrol and diesel engines will become available and then, in early 2005, a 1.6-litre of both fuel types will also go on sale giving the S40 a huge engine choice. Volvo is obviously after that lucrative fleet driver market.

We tried the T5 turbo version (well, wouldn't you?) that turns the S40 into a genuine sports sedan. With 320Nm of torque, there's no problem getting the power down, meaning 100kmh is reached in a quick 6.8 seconds, while top whack is claimed to be 232kmh. Yet despite all that power, it's not the kind of car that makes you tear into the nearest corner as you would with a BMW 325i; it feels like a big car and doesn't engage the soul in the same way.

The ride is excellent, but the handling, when pushed, becomes woolly. So we'd just relax and go for the five-speed auto gearbox over the six-speed manual as it suits the car better.On the motorway the S40 is a superb cruiser - more than a match for an Audi A4 or even Merc C-Class, thanks to the ease in which the power is delivered and a taut ride that still irons out the bumps.

Despite all this quality, the S40 is very competitively priced. The range starts at $39,950 for the basic 1.8 S, while the well-equipped T5 as seen here is $54,950. Of course, expect even cheaper prices when the smaller engines become available over the next 18 months or so.

So while it may not be as fun to drive as some other prestige saloons on the market, it's still stylish, extremely well built and should raise Volvo's profile to one of being a genuine BMW and Audi rival. Of course, whether this carefully crafted image that's taken two decades to create will be appreciated enough by BMW owners to persuade them to jump ships remains to be seen. But the caravan pullers will be pleased...

Paul Walton