The European Car of the Year list isn’t always an accurate grading of a good car.

Would you believe the forgettable Renault Safrane was a top-three winner in 1993? Or that in 1979 the Talbot Horizon was the best car on the continent? Or even that in 1965 the Autobianchi Primula was second only to the Austin 1800?

Autobianchi? Primula? OK, some work on Google tells me it was part of the Fiat group and is now only known by petrolheads and anoraks. Volvo, it seems, hasn’t appeared much on the ECOTY list. In 1983 the 760 was third (behind Audi 100 and Ford Sierra), and them nothing until this year.

That’s right, Volvo’s next listing was in 2013 when the V40, tested here, came third behind Volkswagen Golf and Toyota GT86/Subaru BRZ.

It is good news for Volvo after a tumultuous time. Sold by Ford, Volvo is now part of the huge but little-known Geely group.

After a decade or so under Ford’s stewardship, the link-up with Geely certainly raised eyebrows in motoring circles.

But the signs are good. Volvo has launched some important new models, most significantly the V40 which is aimed at restoring the company’s presence in Europe where the vast majority of these cars will be sold.

The V40, built in Belgium, is indeed a highly-rated car. This car, as you might expect from Volvo, has a fantastic chassis which makes for a good driving experience. The engines, too, are impressive offering a good combination of low emissions and high economy.

It also offers two world first safety systems – another achievement you might expect from Volvo. It has a pedestrian detection system as well as the groundbreaking pedestrian airbag which operates through sensors in the front bumper which registers physical contact between the car and the pedestrian.

A new owner and security is great but the age-old key to survival is a steady stream of new products, and the first signs of progress are good. Yes, the V40 is based on a Ford platform and is powered by Ford engines, but the bosses at Volvo are keen to stress that the overall package is all their own work – from the funky styling to the car’s impressively low emissions numbers and cabin refinement to rival anything from Germany.

That’s right, Volvo is aiming its sights at the traditional European makers with its V40, which it would like you to think was a worthy alternative to the likes of BMW’s 1 Series and Audi’s A3. The Swedish firm is chasing the ‘compact premium’ carrot, and the V40’s refined cabin complete with high quality materials is a sign of how serious the Swedish firm is.

For all the car’s edgy exterior appearance, the V40’s interior will look familiar. Volvo’s trademark ‘floating’ centre console has been retained along with switchgear and display ergonomics. Together, they create a classy cabin.

On the subject of performance, the V40 is being offered with a range of four-cylinder petrol and diesel engines, plus a choice of manual, conventional auto and direct shift DSG-style gearboxes. And it’s here that there’s evidence of a big shift in Volvo’s priorities. Yes, the car does come with a rather clever pedestrian airbag that pops out from the base of windscreen, but low CO2 and fuel consumption have become big talking points back at the mothership in Sweden.

The reality for consumers is that you can have a V40 with a sub-100g/km CO2 figure, making this compact premium hatchback a serious contender in the fiercely competitive company car market – low Benefit in Kind tax and overall running costs are key considerations.

The bottom line here is that such a performance from the 114bhp D2 diesel variant should lead to more sales and the ability for Volvo to make steady inroads into the lucrative small luxury market.

And while that’s great for Volvo’s bean counters, it should also benefit car buyers. It’s plain to see from the V40’s cabin that you’re going to be on the receiving end of an upmarket experience – ride comfort, space for front seat occupants, equipment levels.

That in D2 trim it boasts a decent turn of speed – 0-62mph in 11.7 seconds, 118mph max speed – ensures that you don’t feel compromised by the 94g/km CO2 and 78.5mpg eco-ratings.

In total there are three petrol and two diesel units, with the former offering increasing levels of performance while remaining composed and refined and the latter adding more thrust without the usual diesel rattle and shake.

Interestingly, where fitted the regular auto gearbox delivers a smother performance than the sporty DSG ‘box, with the short-shifting manual a pleasant surprise.

Three trim levels complete the V40 package, with the base ES offering more than most rivals and the others serving to shine a bright light on the Scrooge-like behaviour of the opposition.

And that’s, obviously, before you include the V40’s various safety systems, including an automated braking function that can help when driving distracted at city speeds, plus the numerous airbags and electronic stability control features.

With Volvo now free of its Ford shackles and safely in the arms of a more understanding parent company, the Swedish firm’s new V40 is an impressive start to the next chapter in the car maker’s history.

With V40’s exterior mirroring the trend set by the S60 and V60, there’s a more cohesive look and feel to this new family of Volvos.

Granted, the good work started with the larger 60-series cars before the change of ownership, but this new V40 is a symbol of future success.

 

Volvo V40 1.6
T3 150 ES

PRICE: £20,630. The V40 spans £20,630 to £27,045
ENGINE: A 1.6 litre unit generating 148bhp via front wheel drive
PERFORMANCE: Top speed 130mph and 0 to 60mph in 8.4 seconds
COSTS: Average 53.3mpg
EMISSIONS: 124g/km
WARRANTY: Three years, 60,000 miles