Volvo expands the lower end of its lineup

Volvo is expanding its lineup with its smallest and least expensive model on the market.

The all-new 2007 C30 hatchback is the creation of Canadian designer Simon Lamarre. The 38-year-old native of Quebec penned the exterior shape of the two-door hatch. And the result is a package that blends form and function beautifully — the look will likely appeal to cash-conscious, practical Canadians who generally adore hatchbacks.

The Volvo C30 comes in two trims — 2.4i and T5. The base 2.4i starts at $27,495, while the top-level T5 is $31,995. Be cautious adding options, though; it's easy to push the price up with extras. My nicely equipped T5 tester rings in at nearly $40,000 — perhaps a bit more than you'd want to spend on a hatch. But once you step inside, you'll appreciate the price premium.

Even though the C30 is Volvo's lowest-priced model, it doesn't look or feel cheap inside. The cabin is filled with high-quality, upscale touches. Soft leather covers the steering wheel and gear shifter knob on my T5 tester.

A thin floating centre console houses many functions including the audio system, climate control and controls for the heated seats. Everything is intuitively placed within arm's reach.

Aluminum on the console complements the door panel inserts and adds a modern, youthful feel to the cabin.

A nifty compartment behind the console is handy for hiding a wallet, cellphone or MP3 player; while a front armrest with bin and front seat-back pockets provide more storage.

The C30 T5 has an abundance of standard features, too, such as cruise control, dual zone climate control, a trip computer and a tilt and telescoping steering wheel.

My tester is also decked out with a premium sound system. For $1,000, the DynAudio package adds 10 speakers, an in-dash six-CD player with MP3/WMA capability, and a 650-watt Alpine digital amplifier.

While the C30 is Volvo's smallest car, it has lots of room for passengers and cargo. Unlike most Volvos, the C30 isn't marketed as a family car — it's more practical for singles or couples. That's why you'll find only two seats in the rear.

Just like the front bucket seats, the rear bucket seats are large and supportive. The only problem is getting in and out of them.

The C30 has only two doors and even though the front seats slide forward, it's still a challenge and awkward for adults to enter the rear. The space is too small to squeeze in easily, or gracefully, for that matter.

But once nestled in the rear seats, it's quite enjoyable and inviting. There's ample leg-, shoulder- and headroom. A folding rear centre armrest, side panel armrests and storage compartments are also practical features.

Accessing the cargo area is easy — just hit the key fob to unlock the glass tailgate. The tailgate opens high, out of head-banging range. A low liftover height also makes it a cinch to load and unload items.

There's ample cargo space at 364 litres. But if you need more room, the 45/45 rear seats fold flat, nearly doubling the area. The cargo area is also nicely carpeted for a clean look.

Normally I'm not a huge fan of hatchbacks, but the C30 is an exception. It's cleverly designed to resemble the profile of a coupe more than a hatch.

Elegant flowing lines, Volvo's familiar front end and large dual exhaust tailpipes give the C30 a sporty look.

Tinted glass, power heated side view mirrors with side-direction indicators, a heated rear window, front and rear fog lights are also nice touches on the T5.

An optional sport package adds 17-inch alloy wheels, bi-xenon headlights with twice the illumination of conventional halogen headlights, heated front seats, power and memory driver's seat, and headlamp washers. At $3,400, the package price is a bit steep.

While I love my tester's passion red colour, the exterior metallic paint costs an extra $650.

The C30 T5 is powered by a 2.5-litre, five-cylinder, turbocharged engine that delivers 218 horsepower and 236 lb-ft of torque.

A six-speed manual transmission is standard. The short-throw gear shifter is one of the simplest and smoothest I've ever used. The clutch is lightweight and the gear change is precise.

The ride is spirited, sporty and fun. It's also surprisingly quiet; bumps and potholes are nicely absorbed by the hatchback.

The C30's compact size and tight turning radius make it a great city car; it's simple to manoeuvre in crowded areas.

The rear glass tailgate helps when parallel parking, too — you can actually see more of what's behind you than most vehicles.

In general, the C30 has excellent all-around visibility thanks to long rear-side windows.

For me, there's something about a Volvo that feels extra safe. It probably has to do with the long list of standard features you'll find on all Volvos.

The C30 has multi-stage front airbags, side impact airbags and inflatable side curtains. Dynamic stability and traction control, ABS with electronic brake distribution, emergency brake assistance, a collapsible steering column, and whiplash protection system in the front seats are also standard.

The C30 is a well-equipped package that's outside of the Volvo box, yet still practical for singles and couples alike.