DESIGNED in Germany and built in Belgium, this is one of the hottest cars on the European market.

It’s the handsome, new Ford Mondeo and Australians are going to love it, too.

Mondeo slots into the mid-sized car segment and comes up against some polished contenders such as Mazda 6, Honda Accord, Toyota Camry and Subaru Liberty.

However, it is remarkably competitive backed by movie star looks, high levels of comfort, solid performance and economy, and sharp pricing.

We tested the diesel hatch version - the TDCI - priced at $37,990.

At a time when large cars are being shunned by many buyers due to rising fuel costs, this premium quality car, available as a sedan or hatch, is just what the accountant ordered.

The Mondeo is plenty big enough for most families, and is longer, wider and taller than its opposition.

There’s ample room for five adults, good flexibility via split-fold 60/40 rear seats and generous boot space in both body styles.

At its heart is a 2.0-litre, 4-cylinder turbo-diesel engine, which is extremely frugal, sipping only 7.3 litres of diesel for every 100km covered.

The engine, also found in Ford’s Focus, produces 96kW of power at 4000rpm, but more importantly a meaty 320Nm of torque between 1750rpm to 2240 revs.

Despite having a significantly bigger and heavier body than the Focus, the TDCI performs brilliantly.

Plant the right foot and the car jumps away nicely, responding with more than enough gusto to satisfy most drivers. Adding to the pleasure is a silky-smooth 6-speed automatic transmission. Minimal noise from the diesel makes its way into the cabin.

The sporty Mondeo grips the road nicely and handling is first class.

There are a host of safety features, which have earned the model a five-star Euro NCAP crash-safety rating.

It comes with an enhanced Intelligent Protection System (IPS) complemented by Anti-lock Braking System (ABS) with Electronic Brakeforce Distribution (EBD) and Emergency Brake Assist (EBA), Dynamic Stability Control and seven airbags, including a driver’s knee airbag and full length side curtain airbags.

Other innovations consist of a capless refuelling feature, an automatic hazard warning light and optional voice control command of Bluetooth, audio, climate and phone control systems.

There’s also a Sony premium sound system (a six-disc CD player with eight speakers and MP3 compatibility), rain sensing wipers, front and rear parking sensors, dual-zone climate control, cruise control and a leather wrapped steering wheel.

The other vehicles in the Mondeo range include the LX (from $29,990), a higher specification Zetec (from $34,990), and the range-topping sports performance Mondeo XR5 Turbo ($41,990).

Ford anticipates 550 sales a month in Australia with the TDCI expected to account for 20 per cent of those. For us, it proved the stand-out.