The 'lifestyle estate' is becoming an increasingly hard fought market segment with all the big players now involved. As the recognised leaders in estate car design, Volvo was always going to be a force to be reckoned with, but their appeal has always been limited by a staid image, uninspiring looks and lack of driver enjoyment. The V50 is Volvo's latest entrant into the market and promises to address these key issues. The S80 we tested recently prompted a major rethink on my behalf with regard to Volvos and their dynamics, to the point where I actually looked forward to the V50 T5 tested here, and the promise of even better dynamics and agility thanks to its more diminutive dimensions. Can the V50 push Volvo further forward in terms of driver appeal?

The V50 almost completes the Volvo revolution from square brick estate to stylish lifestyle sports wagon. The familiar design cues remain, such as the large grille and the shoulder line that now continues in one flowing stroke from the bonnet, down the flanks and ends in that characteristic hip line at the rear. This is arguably the best-looking Volvo yet and is a genuinely good-looking car full stop, not just a good-looking Volvo. Our test car was fitted with 17" rims that come as standard as part of the SE trim level. In coordination with the black paintwork they make the Volvo look purposeful, clean and classy.

The design innovation continues on the inside with the unique "floating" centre console made of a thin body of plastic in our test car (although I think it looks better in the bright metallic finish also available). The console houses the usual air conditioning and stereo controls and gives the V50 a unique spacious air, which really is more than a gimmick. It also allows a decent size storage bin to be fitted in behind it, in addition to the numerous cubbies and pockets always found in Volvos.

The usual roomy interior and large boot are also present, as is the latest Volvo virtue, namely a stonking stereo with Dolby Pro-logic and a 6 CD changer integrated into that clever console. Something else usually found in Volvos is a comfy seat, and the leather items fitted to our V50 were no exception to this norm. Electrically adjustable and heated, they support in all the right places, although the more enthusiastic driver may appreciate a touch more lateral support.

And this is where things take a little turn for the worse. For years now it has been generally accepted that more than 200bhp channelled through only the front wheels is not the best solution when it comes to dynamics. Clever differentials and traction control systems may have improved the situation, but our test V50 simply underlined the issues involved. The engine itself is a gem; powerful, smooth and torquey, it offers serious urge anywhere from 2000rpm to the red line. The problem is that it simply packs too much oomph for the front wheels to transmit. All too often the inside wheel would spin up in tight corners or out of junctions and the steering would tug away as the front wheels scrabbled for grip. Strangely, the traction control allows a fair amount of wheelspin before it cuts in; I don't like intrusive driver aids one bit but this system seems to be a little too relaxed.

It's a shame that this characteristic undermines the rest of the chassis work because when you're not trying to get the power down the car steers well with real accuracy. You can never disguise the weight of a car, but the way you control it is what matters and the V50 scores well in this department. The ride is a little on the stiff side, but the pay off is decent body control on all but the bumpiest of roads. The six-speed manual shifts smoothly and quickly though one has to question whether you actually need a 6th ratio when the engine delivers so much torque. I'm guessing the market demands such a thing nowadays. In reality you spend most of your time short shifting through the box.

Following our recent encounter with the S80 we expected great things of the latest generation Volvo but were left feeling slightly disappointed. It's hard to know what the T5 is meant to be. All that power and a six-speed manual suggest a sporty drive, but expect a 3-series or Impreza rival in terms of dynamics and you'll be disappointed. On the other hand the firm ride leaves it short of being an accomplished luxury cruiser. Personally I think I'd skip the front drive version and spend the extra £1,000 to buy the four-wheel drive version (tagged AWD) and, depending on how it drove, I'd consider taking the auto' box as well.

Overall the V50 is a good solid effort that will leave Volvo fans satisfied whilst attracting new younger blood to the brand. It's just a shame that an opportunity seems to have been missed. It's good, but we thought it would be so much better, and in this form at least, it isn't a cohesive package.