You may be old enough to remember the original Mini and Volkswagen Beetle, both models which have resurrected with very modern equivalents.

The new MINI and Beetle have become modern classics for their designers, BMW and VW, and have sold in huge numbers. The MINI, in particular, may well be claimed to be the most significant car launched in the last ten years.

Now you can add to the that list of revived retro motors the new Fiat 500, a 21st century incarnation of the iconic model which sold in huge numbers between 1957 and 1975.

It's here to mark Fiat's revival after a challenging few years. While the ever-so-successful Grande Punto is the company's best-seller, the new 500 is expected to notch up 18,000 this year. It might have been more if Fiat UK had been able to persuade their Turin bosses to let them have a greater number.

The new 500 sits alongside the Panda at the cheaper end of the Fiat family but it is very much a stylish vehicle designed to provide a halo for the brand. While the Panda appeals to the sensible driver who wants fuss-free motoring, the 500 is an altogether a more stylish vehicle. It's still functional but it has an appeal which which make it a modern motoring icon.

Essentially, there are nine models - three engines and three trim levels - costing from less than £8,000. The engines are 1.2 and 1.4 petrols and a 1.3 litre diesel and these are fine, but if you fancy a hot 500 you might have to wait for a sports version Abarth due later in the year.

Tested here is the 1.2, probably the best of the bunch and expected to account for half of all sales. It's a spirited little engine which zips to 60mph in just under 13 seconds and on to 99mph. It also returns more than 44mpg around town. Neither the diesel or the 1.4 petrol offer enough extra performance or economy to make it worth the extra money.

Style-wise, the 500 is eye-catching. On the launch in an around London it certainly caught attention in a city where dashing cars are ten-a-penny.

The cabin, especially, is impressive. Like the one on the MINI, it is retro in style but less ostentatious. The dash is very well put-together and there is a great feeling of space for such a compact motor.

The test version, which has the entry-level Pop trim, comes with anti-lock brakes, power steering, chrome and body-colour trim, powered windows and a four-speaker stereo. You can pay extra for a whole load of extras including decals such as stripes and numbers to customise the car.

It has few shortcomings. Certainly, it has plenty of appeal for a relatively cheap motor. It could have done with a much hotter version at the outset, perhaps, and maybe it's very feminine in style. Men, maybe, won't be as keen to get behind the wheel of this model as they are with, say, the MINI which is more unisex.

To does, however, ride and handle very well for a tall car and it has a coveted five-star Euro NCAP safety standard. No wonder 4,500 orders have been placed ahead of its official launch on Monday.

PRICE: £7,900. Range goes up to £10,700

ENGINE: 1,242cc four-cylinder eight-valve engine generating 69bhp

PERFORMANCE: Top speed 99mph, 0 to 60mph in 12.9 seconds

COSTS: urban 44.1mpg; extra-urban 55.4mpg; combined 55.4mpg

EMISSIONS: 119g/km