IT DOESN'T take long to realise why the Passat is the middle-range car which every other maker now uses as the one to match.

They'd like to beat it, of course, but so far nothing has overtaken this Volkswagen since it arrived in late 1997 and quickly became Europe's top choice in that bracket.

It set new standards for quality, refinement, styling and performance in a class previously dominated by repmobiles and unremarkable family cars.

The reception the Passat received must have taken even VW by surprise. For years, the model had been a regular item in the VW catalogue but it was a solid, dull-looking creature which was never going to excite anybody.

While VW's Golf GTI became an integral part of the Eighties yuppie culture, the Passat just sort of filled a gap in the catalogue.

Suddenly, a glamorous new version arrived on the scene, and Passat became the top seller among company cars.

It was also voted European car of the year, and best family car by What Car?, Top Gear, Which and Auto Express.

The sales figures sum up the story. In 1996, the old Passat sold under 3,000 cars. By 1998, the new car had reached over 24,000 a year.

It is now well-established that Ford's designers were given the Passat as a benchmark when they created the latest Mondeo, and the styling similarities are certainly obvious.

So for 2001, the Passat was also updated, with a comprehensively revised exterior and interior, new engines and a raft of technological advancements.

We now get more Passat for our money. The track is wider, the body is slightly larger, it's taller, and the body stiffness is 10 per cent better, which improves safety and dynamism.

It is also the most cost-effective car in its class, says VW. Servicing is every 20,000 miles, with oil changes at 10,000.

Drive one and very quickly you will agree that it is perfection on wheels. Well, virtually we have to allow for the one or two drivers whose personal preferences do not fit in with the rest of the world.

The Passat is good looking, but free from the excesses of desperate designers, and into its neat body VW has packed everything we could possibly need, in an arrangement where everything seems to be found just where you want it.

The collection of controls, dials and switches, plus the inclusion of the ever-growing list of easy-living gadgets, is an object lesson in creating a car for today.

I am no wild enthusiast for Volkswagen, but it is a simple fact that they tend to get things right starting with the ignition key (the 'blade' folds away, to avoid tearing your pocket) and the remote door lock which always works, in comparison to so many which require a second or third attempt.

As for ability, the Passat has no serious rivals. Put simply, it drives smoothly and peacefully, which is basically all we really need, yet when extra performance is wanted, it is always ready and waiting, requiring only the slightest encouragement.

This will obviously vary according to the power unit you choose. There are four petrol engines 2.0-litre, 1.8 20-valve turbo, 2.3-litre V5 and a 2.8-litre V6 with 4Motion (VW's term for four-wheel drive).

The Volkswagen group's diesel engines are still arguably the best you'll find, which is why I asked to drive the 1.9-litre TDI which gives a storming 130bhp (there's also 100bhp version, plus a 2.5-litre V6).

My test car also had auto transmision VW's Tiptronic which, like so many these days, also allows the driver to nudge the selector if he/she wants to over-ride it.

But it was hardly necessary: the auto seemed to sense exactly when I needed extra thrust and changed down with little fuss to sail up hills with ease.

I drove the estate version, which doesn't exude quite the same racy style inspired by the saloon's sweeping roofline. Such things can influence a driver's attitude to his/her car, but I found the driving experience no less delightful: every aspect of the car lived up to its promise.

On the road prices for the saloons start at a Mondeo-rivalling £14,495, rising to £23,465, while the estates are priced from £15,445 to £24,415.

Volkswagen hasn't got out of the habit which in recent years many makers have removed of adding a list of extra-cost options which in some cases cover items which we tend to expect as part of the standard spec.

But all models have twin front and side airbags, ABS with EBD, remote central locking and alarm, air conditioning, electric windows all round, and a fully galvanised body.

Volkswagen Passat

Estate Sport TDI

Body: 15ft 4in by 5ft 9in five-door five-seat sporty estate.

Power train: 1896cc 4-cylinder 130bhp diesel engine driving front wheels through auto gearbox.

Performance: 0-62mph in 11.9 seconds, top speed 122 mph.

MPG: urban 28, extra urban 49, combined 39. Tank: 13.5 gallons

Price: £21,145.

Insurance: Group 12.

Servicing: Major 20,000 miles, minor 10,000 miles.

Warranty: 3 years/60,000 miles, 12 years anti-rust

Your local dealer: The Oval Motor Company, 22D Broadway North, West Wilts Trading Estate, Westbury. (01373) 855855