The Saab 9-3's place in the world was once quite clear. You bought one if you couldn't stretch to an Audi, a BMW or a Jaguar. The latest model has loftier aspirations and Saab is being empowered to shoot for the stars. It's still early days yet but the signs look very good for this revised 9-3.

One recurring nightmare for any motoring journalist is to be flown away to a press launch only for the realisation to dawn that they are in fact there to drive an all-new grille and headlights. You sit for two days while an increasingly desperate PR tries to convince you that with this new grille and headlights, their depressing billet of mediocrity is about to haul itself from the slough of despond to the top of the class. This charade happens more often than you'd think and I began to suspect that Saab had hoodwinked me into just such an exercise with their revised 9-3.

Yes, it does have a revised grille and headlights but there are also over 2,000 other part changes. Most observant customers will notice at least ten differences and while the 9-3 was never the runt of the compact executive litter, it knew its place, hovering between the mainstream and the premium in a sort of aspirational limbo. Saab is, predictably, trying to give the latest car a nudge upmarket. The results are not totally unconvincing.

Saab has given the 9-3 a welcome shot in the arm with a couple of big steps forward in terms of engineering. As well as a 180bhp TTiD 1.9-litre diesel engine, there's also the XWD 'cross wheel drive' model on the horizon - effectively an all-wheel drive version with a Haldex differential to direct drive to the rear wheels where necessary. This will forever solve the rather wayward power deployment of range-topping front-wheel drive 9-3s.

Aside from the impressive diesel, which uses a twin-stage turbo to deliver all that power, there are more conventional turbo models. The 1.9-litre 16v is good for 150bhp, while a cheaper 8v engine serves up 120bhp. Petrol buyers are catered for by a 122bhp 1.8i, a turbocharged 1.8t, and 175bhp and 210bhp versions of an all-aluminium 2.0-litre turbo as well as the big banger in the line up, the 280bhp V6 turbo. This will get to 60mph in 5.9s and run on to 152mph. There are also two BioPower engines that run on a bioethanol E85 mix - choose from either a 1.8t or a 2.0t here.

"Saab has given the 9-3 a welcome shot in the arm.."

Three body styles are offered - Saloon, Sport Wagon and Convertible - along with four trim levels which, combined with the nine engines, makes for a massive range. The driving experience hasn't changed all that much. The ride and handling compromise is still very well judged but the more powerful models highlight the pressing requirement for all-wheel drive which Saab has belatedly woken up to. Comfort inside the car is excellent thanks to great seats and a multi-adjustable driving position but the pedals are a little clumsier than you'd expect in a car with enthusiast pretensions.

The front end of the latest 9-3 isn't quite so outre as its bigger brother, the 9-5. The Dame Edna spectacles are thankfully absent and in their place is a classier finish to the front grille and a set of LED light strips that sit across the top of the headlamp pod like an illuminated eyebrow. They do look very smart but after the Audi R8 and now this Saab, we could get a glut of the things. Call it the styling fetish of 2007/08, much like jewel effect lights and clear indicators have been in the mid Noughties.

The clamshell bonnet is a very deft touch, at once drawing on Saab's history and visually widening the front of the car. All external rubbing strips have been removed to give a cleaner look and the Saloon and Convertible both adopt the Sport Wagon's smoked white rear light clusters. The cabin is a little more muted than before, Saab cutting back on the silver painted plastics which can only be a good thing. Otherwise there are still plenty of traditional Saab design cues such as the key located on the transmission tunnel and the slab-fronted fascia panel. Build quality is good if not quite as gratuitously overengineered as some premium rivals. In fact it's possibly not as slick as a Ford Mondeo inside the 9-3, which probably says as much about Ford's aspirations as it does Saab's.

With a Convertible, a Saloon and a Sport Wagon estate, the 9-3 covers a fair bit of ground which is crucially important for Saab, a company that has only two main product families. The Swedes have worked towards simplifying the model range a bit and they needed to as the old line up chopped and changed all the time. As it stands, there are four trim levels: Airflow, Liner SE, Vector Sport and Aero. All cars get features such as alloy wheels, twin front, side and curtain airbags, dual zone climate control and a seven-speaker CD stereo.

Airflow models are the entry level variants and feature 16-inch alloy wheels. Step up to Liner SE and there's also rear parking assist and a Saab comfort pack. Vector Sport adds a sportier chassis, ESP stability control and a leather-trimmed steering wheel. Range topping Aero trim receives sleeker bumpers, sports exhausts, bi-xenon headlights, bigger brakes, heated front seats and at least one engine unique to Aero trim. Prices start at £18,575 for a 1.8i Airflow Saloon and top out at £34,495 for an Aero2.8 V6 Convertible. These prices show that while Saab claims to be mixing it with the big boys, it has remained solidly pragmatic when it judges exactly what the market will bear.

Saab tends to score reasonably well in terms of cost of ownership with decent if not spectacular residuals and low insurance ratings for the amount of brake horsepower available. The 9-3 is no exception. Perhaps the most interesting models in the range are the BioPower cars. Saab's Trionic engine management system automatically detects whether you're running on bioethanol or unleaded petrol, or indeed any conceivable mix of the two, and adjusts the car's ignition for optimum efficiency.

Ethanol has a much higher octane rating (about 115) than ordinary petrol, so you go quicker and it also burns more efficiently. Saab estimate a 20 per cent gain in brake horsepower and a 16 per cent boost to torque. The 9-3 BioPower uses an 85 per cent ethanol, 15 per cent petroleum mix. Therefore the fuel isn't from a totally renewable source, but it represents a good start and 90 per cent of all 9-3s sold in Sweden run on E85. Those amongst you who paid attention in chemistry classes will know that the net products of ethanol combustion are carbon dioxide and water. So where's the environmental benefit? Aside from being able to replenish the fuel stocks, the plants harvested to create the ethanol consume more carbon dioxide in their growth cycle than the resultant fuel will emit when burnt, meaning a net depletion of CO2. Now that is clever.

There's little doubt that Saab has worked hard to improve many aspects of the 9-3. It's also true that the 9-3 isn't quite in the same league as its German rivals just yet and is priced accordingly. The signs on the horizon suggest that Saab may soon be ready to take a big step forward. An expansion of the model range, the introduction of four-wheel drive models that will permit more powerful engines and the increasing autonomy that General Motors has granted Saab due to its encouraging profit figures all augur well for the company. But does it make the 9-3 a car you should consider right now?

The BioPower models most certainly. The 180bhp TTiD model is also interesting but is priced too close to BMW's 197bhp 325d to make it a worthy buy. In fact the 9-3 becomes a relatively more convincing proposition the less you spend.

TOP 5 9-3 DEALS

The results below show the top 9-3 deals on buyacar

	Saab 9-3 1.9 TTiD 180 Aero 4dr Saloon
	ETR	Mthly £393	Saving £5,747	Price £20,726
	Saab 9-3 2.0T Aero 2dr Auto Convertible
	ETR	Mthly £534	Saving £6,309	Price £27,261
	Saab 9-3 1.9 TiD 150 Vector Sport 2dr Convertible
	ETR	Mthly £460	Saving £4,893	Price £24,111
	Saab 9-3 1.9 TiD 150 Linear SE 4dr Saloon
	ETR	Mthly £351	Saving £4,299	Price £18,245
	Saab 9-3 1.9 TiD 150 Vector Sport 2dr Auto Convertible
	ETR	Mthly £471	Saving £5,722	Price £24,668

typical 11.74% APR

PCP finance quote over 48 months,  10,000 miles pa,  deposit of £1000