2008 Pontiac Vibe SPORT HATCHBACK

It was awfully bold of General Motors to launch the important new Pontiac Vibe, one of its most mainstream models, the way it did.

Car launches usually follow a predictable template. You stay in some swanky hotel, then drive the car on a predetermined route along beautifully paved winding roads where you don't see very many other cars.

Exposure to things like potholes, stop-and-go traffic and rush hour are purposefully limited so they don't negatively influence what you might think of the car.

But for the Vibe media test, there was no given drive route, just a map of the city. There were no perfect winding roads, other than those we managed to find ourselves. And traffic? We spent most of the day downtown mired in it, trying to find our way through a list of "challenges" that read like some kind of bad joke:

"Give a ride to a total stranger and make a video of it," the list suggested. Or, "Stuff a minimum of nine adults into the Vibe."

Although the whole thing wasn't much fun in a typical driving-enthusiast sense, our test was probably a better representation of what the car is going to live with day to day.

All in all, the new Vibe is a car that, while not that different in concept from the original, is nonetheless much improved: better to sit in, better to drive, better to own.

It's not, to my eyes, better to look at. A raised hood – presumably to meet pedestrian-impact standards – and a heavy, kinked ridge along the side give the Vibe a heavier, much more aggressive look. But it lacks the elegance and cohesion of the original.

Even the wheels aren't particularly elegant. My tester, which was also done up with lots of stickers, had 17-inch chromed alloys that seemed heavy-handed and still managed to look small.

Beyond any subjective considerations, the new shape's raked-back front glass, thick pillars and small rear window make for some serious blind spots, which makes manoeuvring around tight spots more onerous than it should be.

That's too bad, actually, because the new Vibe is a remarkably nimble car. Its turning circle, for instance, is fantastically small. More than a few times during the day, we found ourselves making U-turns that would have been three-point turns in other compact cars. Short overhangs and light, accurate steering contribute to a car that feels at home wheeling around tight urban areas.

At higher speeds, the set-up works quite well. It's easy to steer quickly around freeway ramps and long sweepers, the suspension exhibiting a bit of body lean but never feeling tippy or unstable. The flip side of this new softness (the old Vibe was quite stiff, even in base form) is much-improved ride quality, which filters out even the worst of urban potholes.

New engines also contribute to an improved sense of refinement. Base Vibes are powered by a 1.8 L, four-cylinder engine, while GT models and all-wheel-drive versions like my tester come with a larger 2.4 L, 158 hp four.

Despite being coupled only to a four-speed automatic in the all-wheeler, its fat torque curve and excellent flexibility make for a responsive, zippy car – one that feels lighter and easier on its feet than the 2.3 L Mazda3 Sport or any of the CVT-equipped Dodge Calibers.

On the negative side, I found that while the four-wheel ABS-equipped disc brakes (rare for a car in this price range) had more than adequate stopping power, pedal feel was mushy, with a dead spot at the top of the pedal's travel that wasn't very confidence-inspiring.

Whatever the driving dynamics, most potential Vibe buyers will be more interested in its flexible, roomy interior package. In this sense, the new Vibe is very much the same as its predecessor, only better.

The front seats are more comfortable, with thicker cushions and larger side bolsters (there's also more headroom, even with a sunroof); the driving position is still a little awkward, with the pedals just a little too close. There's more space in the flip-folding back seats and the seating position is more comfortable.

The cargo area is still finished in hard plastic, which is nice if you frequently carry wet or dirty objects, but not so great if you have hard plastic luggage, which slides and bounces around with every turn or bump. Fortunately, there's a pop-up cargo organizer built into the floor that keeps small items secure. There's also a deep well to hide your valuables.

Overall, the Vibe is comfortable and flexible – more spacious and versatile than conventional hatchbacks like VW's Rabbit, Mazda3's Sport and Subaru's Impreza, while still being smaller, nimbler and more fun to drive than larger crossover hatches like the Nissan Rogue.

Although it's between these classes of cars in terms of size, the Vibe can, if you're careful with the options list, beat them on price.

Base models – which come with six airbags, ABS, tire-pressure monitors and even electronic stability control – start at about $16,000, which is not only a great value but also significantly less than the $19,080 base price of the outgoing Vibe.

All-wheel-drive models start at less than $23,000 with a standard automatic transmission, undercutting the smaller and less-roomy Subaru Impreza.

The price is, in the end, as much the story with the Vibe as any of its tangible improvements.

To be getting such a versatile, useful package at such a reasonable price point is impressive enough. To bundle that with other enhancements, such as a larger interior and much-improved safety, is a real achievement.