Although Volvo still means lumbering estate cars for some, those a little more in touch with all things automotive now appreciate that the Swedish company's palate is now a good deal more cosmopolitan. The latest S40 is a case in point. It's the sort of car I warm to straight away as it's not obvious like so many of its rivals and offers a sense of style that's rare at the prices Volvo are charging. The company dub the S40 'Premium Compact Saloon' and these have traditionally been given something of a rough ride by the British car buying public. Nevertheless this market niche's time may have finally come. The S40 is certainly a good deal more assured than anything that has previously tried to plough this relatively barren furrow. It's a neat looking thing, in effect resembling an S60 that's been in a hot wash a little too long, but all of the details are beautifully resolved. Big, it seems, isn't necessarily best.

Besides big estates, safety is another brand value that's intrinsically Volvo, and the S40 majors on safety, claiming that the S40 is as good to crash in as the flagship S80 saloon. You almost want to take them up on the offer to see if it's as good as they claim, but I suspect the Volvo Press Office wouldn't take too kindly to this form of investigative journalism. Making a small car as safe as a big 'un takes some doing and it's only when you look at some of the finer points of how Volvo have achieved this that you realise quite what this commitment means. It involves casting the turbo housing as one with the exhaust manifold so that the engine is more compact when mounted transversely, giving more space for crush zones. It means developing the Intelligent Driver Information System which monitors how hard you're using the throttle, brakes and steering and will hold incoming telephone calls or satellite navigation instructions until things have calmed down so as not to distract you in the middle of a manoeuvre. It means using four different grades of high tensile steel for crash protection. Would the S40 look a little sexier with BMW-style flame-surfaced concave flanks? Probably. But side impact protection involves having as much deformation space as possible which is why it's slab-sided to keep its occupants looking good. There's plenty of room up front although those with long legs may find rear seat space a little pinched. If you need the benefit of additional luggage space, there's always the V50 estate version.

Think conservative, unadventurous and slightly clunky and you'll be way off beam. The S40 interior incorporates a host of styling touches which we've genuinely never seen before. The exterior won't get too many pulses racing, neatly resembling a shrunken S60, but the cabin is a delight which is a very pleasant departure. How often have we marvelled at the clean, spare design that seems to symbolise the best Swedish architects and furniture designers only to get into our Swedish cars and be faced with a dashboard that looks as if it was knocked up by the office junior? The S40 sees Volvo's stylists bringing their A game. The 'spaceball' gear selector in the S60 showed that Volvo could come up with some neat ideas and the S40 takes the spaceball and runs with it. The key design feature is a centre console that's a softly contoured moulding featuring supremely easy to use controls and fresh air behind it. You can specify wood, aluminium, plastic or semi-transparent plastic finishes and everybody who gets in will notice it. This is probably the neatest interior design feature we've come across since the original Audi TT was launched. Like the TT's cabin. the S40's feels like it has just rolled off a motor show stand and makes the car feel a cut above the usual crowd. Jump from something previously considered rather swanky in this sector such as an upspec Volkswagen Bora and the Volvo S40 feels a good deal more sophisticated.

The Volvo S40 is a car that I could definitely subject myself to an extended spell with. It's stylish, well built and has an appealing range of engines. The Germans used to exert a stranglehold on this market sector, the comparative residual values making it financial folly to buy anything else. I suspect the Volvo S40 isn't about to play by the established rules.