V OLVO'S concept of downsizing is to keep its V70 as big as ever and to fit a turbocharged 1.6-litre petrol engine up front.

It sounds like a terrible idea but in reality it works rather well. Unfortunately, Volvo's idiosyncratic pricing policy could well scupper the T4's chances.

The 1.6-litre engine in question is a version of the turbocharged Ecoboost engine found in the Ford Focus and Mondeo.

In this guise it's been tweaked to generate 178bhp – albeit at a heady 5,700rpm.

This is an engine that positively thrives on revs, and an overboost facility means there's an agreeably broad spread of torque.

This means you won't have to keep working at the gears. This in itself is no great chore as the manual gearbox is slick and precise.

For a premium of around £1,500 there's the option of the PowerShift twin-clutch sequential but, as good as it is, I would only choose this if I were sat in traffic most of the time.

The manual model sprints to 60mph in 8.4s and runs on to a tidy top speed of 134mph.

The engine is a little gem, but what of the remainder of the V70's dynamic repertoire?

Well, that's not quite so sharp. The ride quality is a little busy on poor surfaces, the steering's a little vague and there's a fair amount of body roll.

Switch out of road test mode and it's about what you would expect from a big Volvo estate. Put it on a decent air suspension setup and it would be perfect for the target audience.

The V70 has earned its corn down the years as a serious load-lugger and just because there's a small engine up front it doesn't mean you'll get short changed out back.

There's 575 litres of space and a massive 1600 litres can be liberated if you fold the rear seats down and stack your cargo to the roof lining.

The rear seat offers 16 different combinations and the load bay floor itself features aluminium rails and movable anchoring points.

A sliding load floor is also offered as an option, as is a powered tailgate.

Make no mistake, this 1.6-litre T4 is a very interesting addition to the V70 range.

What sounds like a thoroughly underwhelming proposition is in fact the pick of the petrol V70s and were it not for some daft pricing by Volvo, it would be a car that would earn a solid recommendation.

Fast, relatively frugal and replete with all the space and safety you expect from a V70, the T4 is hobbled by the fact Volvo has priced it more or less identically to the diesel D3, forcing it into the tiniest of niches.

The V70 is not a car that keen drivers will flock to, and by fitting a sporty engine and sticking a plainly optimistic price on it, Volvo has created a car that will only sell to those who vehemently dislike diesels.

Offer at least £1,000 less than the minimum a dealer would let a D3 diesel go for and you will have a smart purchase.