Although European Car of The Year title is a heavy weight of expectation for such a small car to carry, the Fiat Panda looks to be shouldering that particular load rather well. In bringing an unprecedented level of sophistication to the citycar sector, the Panda looks set to wipe the floor with the established competition. It's always good to see what Fiat can do when they bring their 'A' game and the 1.2-litre version that we take a look at here represents a very sound purchase.

Prices start at £7,605 for the Dynamic trim level which features anti lock brakes with electronic brakeforce distribution and brake assist, a trip computer, twin front airbags, dual drive electric power steering and body coloured bumpers. Next up are two variations of this version, both priced at £8,205. The Dynamic AirCon features - rather unsurprisingly - air conditioning as well as black aluminium roof bars, remote central locking and side rubbing strips. Meanwhile, the Dynamic SkyDome swaps the air conditioning system for an electric sunroof and adds foglamps. The Eleganza trim level features alloy wheels, climate control, a split/folding rear seat and is priced at £8,805. At the top of the 1.2-litre range is the Panda 4x4 which has a £9,865 asking price.

The 1.2-litre engine is one of the Panda's greatest assets. True, 60bhp may not sound a whole hill of beans, but when fitted to the Panda it gives it enough go to make it a good deal more versatile than many citycar rivals. It's almost as if the citycar sector can be subdivided into those models which you'd never contemplate taking a longer journey in and cars like the Panda that are well up to motorway cruising. Part of the reason for this is that the Panda 1.2 features a four-cylinder engine, whereas many of its rivals have to work a three-cylinder unit that much harder to keep pace. At typical motorway speeds, the engine is a little vocal but not too intrusive and wind and road noise are well suppressed.

Fiat have gone to great lengths to instil a big car feel in the Panda and the amount of soundproofing pays dividends. Fiat claim the Panda is the only car in its class to have 99 per cent of its interior surface lined, and this certainly helps both the perception of quality and noise suppression. The Panda will pull from low speeds cleanly and the gearshift is probably the best in the citycar class. The clutch feels like a well engineered item as well, being progressive in its action, making stop/go progress easy to manage. The 'City' button takes all the weight out of the steering system and makes three point turns an exercise in effortless wheel twirling.

"Fiat have gone to great lengths to instil a big car feel in the Panda"

The cabin is very well finished with a good deal of space but there is a caveat. If you're over six feet tall, do not order the Panda with the SkyDome sunroof as it eats into headroom quite drastically. What's more, the sunroof surround is quite pronounced and features a definite ridge that you taller occupants easily and painfully clout their heads against. Space in the back of the Panda is a mixed bag, the car being wider and taller than many rivals but without a great deal of legroom. Still, Fiat can only do so much with a car that measures just 3.54m from nose to tail. Luggage space is surprisingly good, especially if you opt for the added practicality of the Eleganza's split/fold rear seat. The hatchback is both wide and tall and there's no intrusion from the rear light clusters although the rear wheel arches limit ultimate carrying capacity somewhat.

Despite their ongoing efforts to convince us that they can build a wide and varied model range, it's an inescapable fact that Fiat are still largely associated with tiny citycars. From the diminutive Topolino through models like the 500, Uno and Cinquecento, Fiat have proved masters at making tiny cars with enormous appeal. Originally introduced in 1980 and still produced in Italy until September 2003, the Panda has been one of Fiat's more enduring successes, notching up over four and a half million sales.

It didn't have the easiest start to life. Originally slated to be called the Gingo, it seems Renault have done Fiat a huge favour by insisting they ditch this awful moniker because it sounded too similar to their Twingo - a car that competes for the same market share. Quite why Fiat wanted to ditch the Panda name is a little baffling as it's still remembered by most as a car that was inexpensive, rugged and ahead of its time; qualities you'd think Fiat would like to associate their latest offering with.

Although the Panda was last sold in the UK in 1995, it retains a strong identity and this will help kick start sales of the latest car. Unlike some of Fiat's recent offerings that have featured rather 'challenging' styling, the design of the Panda is straightforward, and appealing. It does feature a few stylish touches however, including the profile of the glazed area that arches back to a neat quarter window that in turn butts up against an enormous vertical rear light cluster. The Panda also features well-defined 'hips' that taper forward and integrate with the front wheelarch and headlight areas very slickly. In being able to integrate a good deal of stylish features without the car looking bitty, the designers should be applauded. Originally designed by Bertone and finished with the help of Fiat's in-house design staff, the achievement is all the more laudable for the fact that the Panda is a five-door car. It's often the case that such small cars look great with three doors but as soon as the stylists try to cram five doors into a short body length, the cohesiveness of the lines go out of the window. Not so with the Panda.

Structural solidity is the first factor in this equation and the Panda features body structures that at first cushion impact and then direct energy away from the rigid passenger compartment. You can choose no fewer than six airbags if you wish, although driver and passenger airbags are standard on all models. Even the 1.2-litre Dynamic model is fitted with anti lock brakes, and brake assist at no extra cost. You'll find £25,000 executive cars that will require you to tick the options box for some of these features, so to find them in a £7,000 citycar is a testament to Fiat's commitment to safety.

The Panda is such a convincing proposition as an inexpensive utility vehicle that it will probably only reinforce the perception that Fiat is a manufacturer of great small cars. Let's hope it doesn't become a victim of its own success. Right at the moment, however, one suspects Fiat would take any sort of success. The Fiat Panda 1.2 has success written all over it.

TOP 5 PANDA DEALS

The results below show the top PANDA deals on buyacar

	Fiat Panda 1.3 Multijet Dynamic 5dr Hatchback
	ETR	Mthly £114	Saving £1,629	Price £6,966
	Fiat Panda 1.2 Dynamic 5dr Hatchback
	ETR	Mthly £100	Saving £1,344	Price £6,256
	Fiat Panda 1.2 Dynamic 5dr Auto [AC] Hatchback
	ETR	Mthly	Saving £1,712	Price £7,288
	Fiat Panda 1.2 Eleganza 5dr Auto Hatchback
	ETR	Mthly £128	Saving £1,869	Price £7,731
	Fiat Panda 1.2 Eleganza 5dr Hatchback
	ETR	Mthly £117	Saving £1,659	Price £7,141

typical 12.96% APR

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