At first glance, Fiat's new 500 looks strikingly similar to Dante Giacosa's iconic 1957 Fiat 500. Don't be fooled.

In the same way that the new Mini has taken styling cues from its mid-20th century predecessor and produced a thoroughly modern car, the Fiat 500 is much more than a nostalgic reinterpretation of a piece of Italian motoring history.

Make no mistake, this three-door, four-seater is bang up-to-date. Take a look at the standard equipment - anti-lock braking, remote central locking, seven airbags, electric front windows and door mirrors, CD player and electric power steering - and that's on all models.

Perhaps more importantly, the little car has been awarded a maximum five-star rating in the Euro NCAP crash test -the first time that such a compact car has scored a top rating.

Its engines too - two petrol, a 1.2-litre, eight-valve 69 horsepower and a 100 horsepower 1.4 litre and a 1.3-litre turbodiesel - meet emissions limits which are expected to be set by forthcoming Euro 5 standards, more than two years before the deadline.

Designed in Italy, but built in Poland and priced from under £8,000, the car comes in three trim levels - Pop, Lounge and Sport.

It is a great little car to drive; lively, zippy and a doddle to park. The Sport version tested here delivers a firmer ride which will not bother the younger folk who will probably opt for this trim. If you want a more comfortable driving experience then go for the Lounge.

The front of the new 500 is designed to combine styling cues of the Fiat latest models with the most distinctive elements of the original 500 - circular upper headlights, separate, lower, full-beam lamp housings and the trademark whisker and logo' badging derived from the name of the first Fiat 500, the 1936 Topolino - little mouse'.

At the rear, a large, chrome-plated tailgate handle recalls the bicycle saddle' motif of the original 500's registration plate light holder.

The ability to personalise a car has proved crucial in making the Oxford-built Mini such a success and Fiat is equally determined to give its owners a chance to make their mark.

So there is a choice of more than 100 accessories, options which range from automatic climate control to a SkyDome sunroof, no fewer than seven alloy wheel and two wheel trim designs; eight sticker kits; ten badges, 12 body colours and 14 interior trims.

All this, Fiat says, generates more than 500,000 possible trim, colour and option combinations. Little wonder that very few will be identical.

Auto facts Model: Fiat 500 1.2 Sport

  • Price: £9,305
  • Ins group: Four
  • Fuel consumption (Combined): 55.4mpg
  • Top speed: 99mph
  • Length: 354.5cm/139.6in
  • Width: 162.7cm/64in
  • Luggage capacity: 6.5 cu ft
  • Fuel tank capacity: 7.7 gallons/35 litres
  • CO2: 119g/km
  • Warranty: 3 years/60,000 miles