Volvo S40: It could be seen as the tale of two takeovers. Volvo executives observe the usual Swedish decorum when quizzed about Saab's plight. They rattle out diplomatic quotes about wanting to see all brands succeed and how everyone has been through tough times at some stage. But you know that, when towelled and sweating in the family sauna, they must let loose the odd chuckle.
Both Swedish brands were taken over some years ago by competing US car giants: General Motors taking control of Saab, while Ford took on Volvo. Both brands, firmly focussed on the executive market, were in some trouble when the takeovers occurred. Yet one has risen while the other continues to struggle.
Saab isn't facing extinction, but it must constantly fight its case inside the GM behemoth. The latest decision to move production of the next generation 9-3 to Opel plants in Germany has resulted in the resignation of Saab's CEO.
At Volvo, on the other hand, Ford seems to have got the level of interference just right. Whatever the internal changes were, they've worked a treat.
Volvo could now very well be hived off into a separate operation and sold at a profit. It's part of the Premier Automotive Group (PAG), the division of Ford that encompasses such motoring icons as Jaguar, Land Rover and Aston Martin. The Swedes could even teach these brands a thing or two.
One of the latest benefits bestowed on Volvo from its connection with Ford is the Focus platform. While S40 owners undoubtedly like to consider themselves in the company of BMW, Audi and Mercedes owners, the fact is the underpinnings for this latest entry level Volvo comes from the more mainstay family hatchback sector.
That's no bad thing. While it might not fit the image Volvo desperately wants to convey, the Focus has long been lauded for its handling and ride, by the motoring press, but whether that means anything is another matter.
Dressed in the Volvo metal, the positives remain. The S40 tucks nicely into the corners when pushed, the nose dipping down upon entry, the odd kick of the traction control balancing out the power, and giving a smooth exit.
But, for all its positives in handling, there is a downside to the Focus link and it's nothing as ambiguous as image. It's evident every time you get to load the boot or offer a lift to more than a front-seat passenger. It's also evident from the exterior look. For all its ability, it just seems a little too much like a shrunken S60.
The boot, at 357 litres, is quite small in a segment where most of its competitors easily top 400 litres. The rear seats do fold down and bring the total possible load capacity up to 883 litres, but it's an awkwardly shaped space that's also difficult to access because of the tight opening on the boot. If you spend a lot of time lugging heavy goods around, you should really consider the V50 estate.
The estate version - which we tested earlier in the year - also has the beating of the saloon in terms of rear seating space. While both offer adequate legroom for two adults, the angled lines of the c-pillars and rear window in the saloon means the roof starts to taper in early, limiting rear passenger headroom.
Back to another positive, then, and the new 1.6-litre diesel engine in its ranks. It's arguably the star of the show - again thanks to Ford which co-operated with PSA Peugeot Citroën some years ago to work on diesel technology. The end result was a group of diesel engines which feature in several Ford marques, from the Jaguar S-Type to this entry-level Volvo.
We first came across this new 1.6-litre diesel in the Peugeot 407 and found it a real winner. It offers 110bhp with a good acceleration and, most importantly, little of the diesel clatter one would expect from such a small unit.
With the S40, we had to double-check that we weren't in the 2-litre diesel after our first 50km run in the car. It's both frugal and relatively quiet. The gearbox uses the power well and it's nicely weighted up front to remain neutral in corners and on the road.
Internally, there's also the admirable styling of the dash, including the "floating" central console - the air-condition controls and radio sit on a sheet of brushed steel or plastic with a gap behind it. The quality of the finish is also to be complimented.
Yet, the real secret to the S40's success so far has been its marketing. In other markets it's being positioned as a competitor with upper-end hatchbacks, such as the VW Golf or the new BMW 1-Series. Here, however, because it's got a boot at the back, Irish buyers consider it a viable runner with the BMW 3-Series and the like.
To add to that, its starting price is over €5,000 less than any of these compact executive models. Starting at €28,050, that's a regular family saloon price - up against mid-range VW Passats, Alfa Romeo 156s and Peugeot 407s.
While it doesn't have nearly as much space as any of these, it nevertheless carries certain kudos in terms of image. Thanks to some fancy marketing, Volvo has managed to pull itself up to the executive market - its S60 sibling is seen as a serious competitor for the upper-end 3-Series and A4s.
The Swedes have also played up their ultra-safe image, despite the fact that most other marques have closed the gap: the Peugeot 407 has the same Euro-NCAP safety ratings as the S40.
In Irish driveways - and more importantly in the company car park - the Volvo badge carries more status points than other similarly priced mainstream models.
Interior trim is better than most regular family saloons - and it would see off the likes of the old BMW 3-Series.
In the end, the S40 is a well-built car and the 1.6-litre diesel is probably the best value buy in the range. Behind the wheel, you certainly don't feel like the poor cousin to BMW or Audi.
However, it lacks the sporty appeal of similarly priced hot hatches, and the roominess of regular family saloons. If practicality weighs equal in importance to image with you, then you may want to put aside the upwardly mobile element of the Volvo brand and opt for a little more boot space and headroom in the back.