What about Volkswagen's Jetta and Passat wagons? They are popular albeit not in Volvo's premium league, with the smaller Jetta starting at $25,990 and slightly larger Passat at $31,020. This said they don't offer the same level of standard equipment or prestige.

The V50 performs very well, features exemplary build quality and a well thought out interior design. (Photo: Trevor Hofmann, Canadian Auto Press)

The V50's biggest opponent might be Saab's 2005 9-2, which pulls all of its componentry and the back half of its body styling from the Subaru WRX wagon - the reason why it has been nicknamed the "Saabaru." It will be interesting to see how it is received into the market, being that its economy car roots are hard to ignore.

In the end Volvo has created something highly desirable in the lower premium price range, a car traditional European economy car enthusiasts can aspire to. It performs very well, features exemplary build quality and a well thought out interior design. At least as important when it comes time to purchase, the V50 looks wonderful. I would be surprised if it didn't become as popular in its category as the V70 is in the midsize premium class.

Specifications:

• Price Range (estimated MSRP): $33,000 - $40,000
• Body Type: 5-door wagon
• Layout: front engine, FWD (opt AWD on T5)
• Base Engine: 168 hp, 166 lb-ft, 2.4-L, I-5
• Opt Engine: 220 hp, 236 lb-ft, 2.5-L, I-5, high-pressure turbo
• Transmission: 5-spd man (opt 5-spd auto with manual mode, 6-spd manual)
• Brakes (front/rear): disc/disc, ABS and EBD
• Curb Weight: N/A
• Seating Capacity: 5
• Cargo Volume: 417 - 1,307 L (14.7 - 46.2 cu ft)
• Fuel Economy (estimated city/hwy): 10.5 / 7.2 L/100 km
• Warranty (mo/km): 48/80,000 comprehensive
• Competitors: Audi A4 Avant, BMW 3-Series Touring, Dodge Magnum, Lexus IS 300 SportCross, Mercedes-Benz C-Class Wagon, Saab 9-2, VW Jetta/Passat Wagon
• Web Site: www.volvocanada.com

Note: Additional larger photos available in photo album.