Fiat Panda 1.2 8v Active

And then there was the Panda. Built in the no frills spirit of Fiat's earlier stars, the original 'bread box' Panda was introduced in 1980. It remained on sale in Britain until 1994, but even today it graces Fiat dealerships in most of continental Europe. More than four million Pandas have been sold, but now the original version is making way for a new model. This car doesn't arrive in the UK until January next year, and has already weathered a storm over its name. Originally to be called Gingo, the car reverted to the Panda badge when Renault complained the name was too close to the Twingo's.

Auto Express was the first British magazine to climb behind the wheel and find out if the new Panda can recreate the spirit for which Fiat's city cars are renowned - and prove to be the success the cash-strapped firm needs.

We drove the 1.2 eight-valve Active model, which is expected to have a price of around ΂£6,000 when it hits the UK. Other engine choices include a 16v 1.2 and a 1.3-litre Multijet diesel, as well as an entry-level 1.1 petrol unit for buyers on a very tight budget. But the 1.2 eight-valve is likely to account for the majority of sales. With 60bhp on tap, it's no performance machine, although it does offer reasonably lively performance and can cruise in relative refinement at motorway speeds. What's more, the handling is entertaining, the electric power-steering offers decent feedback and the ride quality is excellent for such a small car.

On looks alone, the Panda will win hearts. Unlike some previous unorthodox designs from Fiat, such as the Multipla, the newcomer's lines work in harmony and give the car a cheerful, likeable appearance. Inside, the dash is spartan and the materials are cheap, but this is an inexpensive car and is designed to be basic and spacious.

Despite being much smaller than its Punto brother, the Panda is big on cabin space. Accommodation in the front is perfectly acceptable for a pair of six-footers, while the seats are reasonably supportive and comfortable. Room in the rear is restricted, but adequate for two adults, while the boot offers a decent load space and benefits from having a low sill.

The Panda is big on safety, too. It's the first car in its class to come with six airbags as standard, while even entry-level models feature ABS, ESP and Brake Assist at no extra cost.

It's all a far cry from the original Panda, which was noisy, had a choppy ride and was short on safety equipment. But Fiat has met the challenge of recreating a legend - and with the new Panda has given us a charming car that could be the tonic the marque needs to lift its ailing fortunes.