Daewoo Kalos 1.2S

However, as it's now under the corporate wing of GM, the company has the perfect opportunity to plunder the parts of other subsidiaries and look for a decent engine or two. It was Suzuki that proved the best hunting ground, donating two new 16-valve petrol powerplants to the range: a 1.2-litre and a supposedly sporty 1.4-litre.

Taken from the Suzuki Wagon R, the new units give the Kalos competitive models at the top and bottom of its range. With prices starting at ΂£7,495 for the entry-level S, it is the 1.2-litre engine which is expected to be most popular with buyers on a tight budget.

The little lump features an alloy cylinder head and produces an impressive 71bhp and 104Nm of torque. This enables the Kalos to cover the sprint from 0-60mph in 13.2 seconds and go on to a top speed of 98mph, making it notably quicker than budget rivals such as the 1.2-litre Skoda Fabia.

On the move, the Suzuki unit is best suited to town use, where its lively throttle response is ideal for nipping through traffic. But if you want to make swift progress, you'll need to work the engine hard. Fortunately, it's keen to rev - it's just a shame that the experience is spoiled by a sloppy gearbox with a vague change and a long throw. Only at motorway speeds does the powerplant start to run out of puff, making overtaking manoeuvres in this Kalos feel as though they need to be planned weeks in advance.

Still, the unit offers reasonable performance for the money, and as the base S comes with driver and passenger airbags, ABS, central locking, front electric windows and a tilt-adjust steering column as standard, it's certainly top value. Stump up an extra ΂£300 for the SE and you'll gain side airbags, keyless entry and heated electric door mirrors.

For those after more power, there's the 1.4-litre. Available only in top SX trim, the car has a long equipment list, including air-con, 14-inch alloys, a rear roof spoiler, front foglamps, a metallic-effect dash and fabric door inserts. At ΂£8,995, it costs much less than top-flight versions of mainstream rivals. On the move, this unit's extra power immediately makes itself felt, and the bigger-capacity Kalos sprints from 0-60mph in a reasonable 11.1 seconds, going on to a claimed top speed of 109mph.

Fuel economy is respectable, too, at 40.4mpg. But while the throttle response is impressive - thanks to a variable intake system designed to maxi-mise torque at low revs - at higher speeds, the engine feels buzzy and unrefined. In fact, on the motorway, the noise from under the bonnet is so intrusive you'll have to turn the stereo up to full volume to drown it out.

Nevertheless, both the new engines offer good performance for the money, although it's the smaller, more refined unit which is the pick of the bunch and best suited to the Kalos's budget price.