Volvo’s been taking a number of new directions lately, so with that in mind this sporty little dart shouldn’t come as a complete surprise. Besides, there’s a market for premium compact hatchbacks, isn’t there? I mean, BMW tried in the early 1990s, and that didn’t work. Mercedes took a shot too, with the 2001-05 C230 Sport, and that one bit the dust, too. Does Volvo think it can succeed where those worthies have failed?

Okay, perhaps that’s a bit more cynical than is called for. The fact of the matter is that Volvo needs a product to capture the hearts and lead feet of young, hip drivers who are looking for the Next Cool Thing. And unlike Mercedes and BMW, Volvo’s a premium European brand that’s capable of pricing vehicles at a level where premium-compact buyers can afford them. If the MINI Cooper is too cutesy for you, and the Volkswagen GTI is a bit too, er, purposeful, then the Volvo C30 is ready to serve up some sensible-yet-stylish Swedish panache.

The last time Volvo did a slick two-door hatchback (in the U.S. anyway) was in the 1960s, with the cool P1800. Forty years later, the C30 hasn’t forgotten that groundbreaker even if most Americans are unaware that Volvo ever built a cool little sports car. The wide, all-glass hatch and long-greenhouse harken pleasantly to the P1800′s ES station wagon variant. The C30 is an angular little badger of a car, with a wide stance and exaggerated shoulder lines that make it look larger than it is at first glance. The roof silhouette tapers toward the rear for an impression of forward motion. The doors are long enough to reduce egress in parking lots. It’s got long lines, too, and looks bigger than it is thanks to the long “Volvo shoulder” line running down the side and the tapered rear. The C30′s low stance and rakish, chopped-off tail give it a sporty look that’s not entirely fulfilled by the performance.

It’s not a disappointing drive by a long shot, unless you’re hoping for a teeth-bared, raw-boned race car. Power is provided by a 2.5 liter turbocharged five-cylinder that’s shared with other Volvo products and produces 227 horses. A choice of six-speed manual and five-speed automatic transmissions is offered; the former is the sportsman’s choice, the latter best for road-tripping and commuting. Pour the power on and the response is similar to that of the S60 sedan; there doesn’t seem to be more acceleration available in this smaller vehicle. Volvo claims a 6.6-second 0-60 time and a startling 149-mph top speed, but the C30 doesn’t feel all that fast when gauged by the seat-of-the-pants meter. Fuel economy also isn’t much improved over the larger cars, and suffers in comparison to other compacts.

The perceived performance is significant, because the C30 will probably be compared to the MINI and Volkswagen GTI–that’s what the folks I’ve talked to who are considering one are cross-shopping. The C30 is an adequate competitor for both of those cars, though it’s somewhat less sporty than either. MacPherson struts are used in the front, with a multi-link rear suspension. The C30 has a long wheelbase for its size, which slows down transitional maneuvers compared to the wish-quick Volkswagen and MINI, but smoothes out the freeway ride beautifully. The wide stance does ensure a healthy measure of stability in the corners, at least. On the road it feels like the sedans that it shares showroom space with; the C30 has a sense of heft that belies its small size; in spite of being eight and a half inches shorter than the S40, it’s barely 300 pounds lighter. It doesn’t feel overweight, just well-built and safe. For buyers who are turned off by the boy-racer aspects of other premium compacts, the C30 represents an excellent compromise.

Unlike the MINI, there’s room for four human beings. The rear seats are scooped out slightly, like bucket seats, and they’re inset toward the center of the car to improve elbow room and allow for side-panel storage. The cargo area will hold a couple of recycling tubs with ease. The C30′s interior looks good, thanks to a slender, waterfall dash panel that’s taken almost directly from the S40. From the front seats, this doesn’t look or feel like a compact car, with ample legroom and a generous view. The tidy, odd-shaped cargo area will hold 12.9 cubic feet of cargo with four passengers, or 20.2 with the rear seats folded flat. It may have a utilitarian hatchback at the rear, but the C30 is no stripped-down economy car; many of its available amenities are shared with larger Volvos, including a 650-watt premium sound system and heated seats. Side- and side-curtain airbags are standard.

Another significant departure is in the C30′s buying process. Available in two models, Volvo also offers the C30 with a Custom Build ordering system. Like MINI, Volvo’s going for a wide range of personalization features to ensure that no two C30s are exactly alike. The Custom Build program lets buyers pay a one-time charge of $300 to have access to almost twenty exterior colors–including an eye-catching lime green–and a host of two-tone interior treatments, as well as a wide range of other options. The C30 can be kitted out with everything from in-dash iPod controls to Volvo’s slick BLIS blind-spot warning system.

The Custom Build program is very Scion- and MINI-like, but the C30 is a significantly more expensive vehicle than either of those youth-oriented rides. The C30′s $22,700 starting price isn’t that far from what you’ll pay for a fully loaded MINI, in fact. So is the additional expense worth it? The C30 comes off as more sophisticated than either of those cars; it’s sporty, but it’s also grown up in the ways that count. This is a car that says “I’m young, but I’m not dumb.” It’s a bit less practical than a three-door hatchback ought to be, but the C30 makes up for that shortcoming with serious style, and that definitely counts in its favor.

Specifications:

All specs are for the 2008 Volvo C30.

Length: 167.4 in.

Width: 70.2 in.

Height: 57.0 in.

Wheelbase: 103.9 in.

Curb weight: 3201 lb.

Cargo space: 12.9 cu.ft. (seats up); 20.2 cu.ft. (seats folded)

Base price: $22,700

Engine: 2.5 liter DOHC turbocharged inline five-cylinder

Drivetrain: five-speed manual transmission, front-wheel drive

Horsepower: 227 @ 5000

Torque: 236 @ 1500-5000

Fuel capacity: 15.9 gal.

Est. mileage: 19/27