VOLVO has long since moved away from the reserved image conjured up by the boxy, safe estates that earned a cult following in the seventies and eighties.

The Swedish car maker's range is now much more expansive and, in many cases, stylish - although the trademark emphasis on safety always remains.

Until recently, however, one marked gap in their stable was in the small to medium family hatchback marketplace.

That has all changed though with the arrival of the V40 and as a first gambit into this crowded and highly-competitive arena it does a pretty good job.

With more than 50 different combinations of power, specification and trim available there is certainly no lack of choice.

I have just been trying the diesel powered D2 version dressed in the sporty R-Design stylings with the range-topping Lux Nav equipment package on board.

The 1.6-litre D2 engine the frugal flagship of the fleet and is capable of delivering a very impressive 78.5 miles per gallon on average with the help of an automatic start stop system which is standard across the whole range.

Not only that, carbon dioxide emissions are also curtailed to just 94g/km so you'll pay no road tax and running costs are hardly likely to over stretch the average family budget.

The impressive economical performance hasn't come at the expense of performance on the road though and I didn't feel embarrassed by the powerful and sporty looking R-Design trimmings.

A 0-62mph sprint time of just less than 12 seconds is nothing special but it felt quicker on the road while a top speed of 118mph is respectable. Throttle response on the move was swift and smooth with the compact six-speed manual transmission offering plenty of versatility.

The taught R-Design chassis also offers good grip and sharp, nimble handling while providing a ride that remains on the comfortable side of firm - although it can become a little unsettled on poor road surfaces.

Generally, though, the V40 is equally capable in busy town traffic or cruising on the open road.

Other more cosmetic trappings of the R-Design treatment include eye-catching alloys, an exclusive front end featuring a glossy black grille, LED lights and twin tailpipes while inside there are sculpted leather front seats featuring embroidered R-Design logos, a blue digital instrument cluster and more LED lighting which can be personalised.

It's a package which looks hot-hatch enough on the outside to keep dad happy but offers enough space inside for the average family.

Head and leg room are good all round despite the coupe-style sloping roof and there is plenty of seat and steering wheel adjustment for the driver to get comfortable.

There are also plenty of nooks and crannies to store your oddments while on board and an innovative approach for the rear cup holders which sees them flip out of a movable panel in the front of the mid-section of the rear seat, meaning the armrest is still free to use.

The interior is put together to a high standard and the materials used are all good quality, in keeping with the luxury image that modern Volvo cars aspire to as they ambitiously go head to head with the premium German brands.

The range-topping Lux Nav equipment package also fits the bill including, as the name suggests, an integrated satellite navigation system and stereo with iPod connectivity, Bluetooth, electric windows, cruise control, multi-function steering wheel and keyless entry and ignition.

And with Volvo's proud reputation for safety you know that you are always going to be well-covered in that department.

The V40 boasts the top five-star Euro-NCAP crash test rating and as well as stability and traction control and all the usual airbags, some useful high-tech safety aids also come as standard including Volvo's City Safe system, which takes over braking when a front end collision is imminent, and the world's first external airbag, which deploys over the windscreen and bonnet to protect pedestrians.

Optional upgrades including automatic parking pilot, lane departure and blind sport warning systems make the V40 one of the safest cars on the road.

So, while the pricing is at the premium end of the market, all that high-tech protection, generous equipment levels and the low running costs and tax bills make this D2 version a good value family hatchback.