Italian city car Pandas to the sporty driver

THE Panda has already mopped up a European Car of The Year award. True, this trophy has been won by such underwhelming offerings as the Talbot Horizon, the Renault 9, the Citroen XM and the Ford Granada but in recent years the panel have chosen wisely. The Panda continues this trend, and if the panel had been able to nominate any given model in the range as the crème de la crème, it would surely have to be the 1.3-litre Multijet version.

Not only is the Multijet diesel the second quickest Panda you can buy, it's also the cleanest and most economical. Naturally, there's a premium to be paid for this and the car, solely available in sporting Dynamic trim, won't be found amongst the real bargain-basement offerings in the city car class but, given you pay for what you get, the price being asked seems fair.

The Dynamic trim level 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.

The 70bhp 1.3-litre Multijet diesel offers reasonable performance with 65.7mpg average fuel consumption. Even around town you'll see 52.3 mpg, while on a longer run, the Panda will return an astonishing 76.3mpg. Couple that cruising economy with a 35-litre fuel tank and the Panda has a range of up to 586 miles – amazing for such a small car.

The 1248cc engine is a thoroughly modern one. Compact and lightweight, it boasts twin cams, 16 valves, second-generation common-rail injection and enough technical nous to meet Euro4 emission requirements.

The usual diesel approach in engines like this one is to shoot a couple of shots of fuel into the cylinder, a pilot squirt preceding the main one. Multijet technology divides that main injection into a series of smaller shots, the idea being to reduce emissions and noise and at the same time increase performance.

Fire the thing up and it sounds a bit feeble but, on the move, 145Nm of torque means it never feels out of its depth, either in town or out on the motorway. Where this car really excels is in mid-range pulling power. Overtaking, then, is surprisingly easy.

Fiat has gone to great lengths to instil a big car feel in the Panda and the amount of soundproofing pays dividends.

The Panda will pull from low speeds cleanly and the gearshift is probably the best in the city car class. The clutch feels well engineered, making stop/go progress easy, and the "City" button takes all the weight out of the steering and makes three-point turns effortless.

The cabin is well finished with good space but there is a caveat. If you're over 6ft tall, do not order the Panda with the optional SkyDome sunroof as it eats into headroom drastically. What's more, the sunroof surround is pronounced and features a ridge that taller occupants easily 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 split/fold rear seat.

Structural solidity is a key strength of the latest model and the Panda features body structures that at first cushion impact and then direct energy away from the rigid passenger compartment.

It's also the first car in this class to offer six airbags as standard on some models. Driver and passenger airbags are standard on all models. Even this 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 city car is a testament to Fiat's commitment to safety.

Fiat have built an enviable reputation as purveyors of some of the finest diesels around. The Fiat Panda 1.3 Multijet capitalises on this in a major way. It also marks something of a transition in the city car sector. No longer are city cars limited, cramped and obviously built down to a price.

If you appreciate a quality product that has some durability, try the Panda. You'll be glad you did.

FACT BOXCAR: Fiat Panda 1.3-litre Multijet Diesel

PRICE: 10,000 – OTR

INSURANCE GROUP: 2

EMISSIONS: 114g/km

PERFORMANCE: 0-60mph 12.8 seconds; max speed 99mph

FUEL CONSUMPTION: (combined) 51mpg