The new Fiat Stilo Multi Wagon is on the right track reports Motoring Editor MALCOLM BAYLIS

THE last 18-months or so have not been particularly good for Fiat. Sales way below expectation, not just in this country but throughout Europe including on home turf, where you would have thought Italian loyalty was unquestionable.

But the problem stemmed not from producing lousy cars, as some reckoned, but because Fiat had a finger in too many other pies. It just has not been closely enough focused on the things it used to do reasonably well.

But that is changing, says Peter Newton, head of Fiat UK's Press office who revealed at the recent launch of the new Fiat Stilo wagon, or estate, that Fiat is shaking up its operations.

Fiat Group and Fiat Auto are slimming down, reorganising, disposing of holdings in peripheral companies, and generally getting a grip of their finances. In any case, explained Mr Newton, the real-life negotiations between Fiat and its bankers have already been signed and sealed. All the parties have to do now is deliver.

Well, if the new Stilo Multi Wagon is an example, Fiat vehicle design at least is back on the straight and narrow. This estate with touches of a people carrier or multi-purpose vehicle about it, is a well thought-out product, and several planets away from the kind of thinking which resulted in the Multipla (a car not to be laughed at really, but as off-beat as they come). As well as that, the Multi Wagon is a handsome car, right up with the top European opposition in its class for style.

Like the rival Peugeot 307 SW, the Multi Wagon is taller than the hatchback on which it is based, as well as having a longer body offering abundant luggage space. There is plenty of original thinking here, not least in the provision of a horizontal bar on the tailgate, which when grasped unlocks it electrically. A fine idea.

The load height is low, the tailgate window opens separately if you press an exterior switch, and the rear shock absorbers are tucked away to reduce the size of the wheel arches and maximise the load space.

As an option on all versions, the Multi Wagon is available with split rear seats which slide independently fore and aft, recline to 30 degrees, or can be folded down. It is a matter, once again, of not only having comfortable rear seating, but also being able to increase the load volume by a considerable amount in a car not fully loaded with passengers.

Up front, there is a comfortable driving position and a driver's seat mounted a little higher than in the hatchback. Switchgear is clustered in individual panels on the centre console, to the far right of the fascia, and on the driver's door. Some manufacturers favour switches in all manner of shapes and sizes, but Fiat has gone for a coherent same-style approach, and that wins hands down.

The switches at the right-hand end of the fascia allows the driver to choose settings for everything from the speed limit warning and automatic adjustment of the stereo volume, to the lights-on sensor. As well as that, the Multi Wagon can be specified with the Fiat CONNECT system which links up with live operators able to provide information on everything from flight times to restaurant openings - and CONNECT is about to get even more sophisticated, with the facility to make bookings on request.

One attractive feature of the Multi Wagon which adds to the general air of well-being about the front cabin, is that the fascia trim is not only neatly textured but also lightly padded, giving a little to the touch.

Fiat is paying a lot more attention to safety features than it did in years past. The Multi Wagon is fully kitted out with airbags, and they can be ordered with dual-stage deployment.

There are two trim and equipment levels - Active and Dynamic, as in the hatchback range. There is another, badged the Active Air Con, which is the Active with air conditioning. This has been added because Fiat has identified a market, especially among fleet buyers, for an entry-level specification with air conditioning.

There is an extravagance of engines, with four different types in the six-variant Multi Wagon range. The 80bhp 1.9-litre JTD turbo diesel is available only in the Active at £12,095. The Active Air Con comes with either a 1.6-litre petrol engine at £12,395 or the 115bhp version of the JTD engine at £13,395.

Of the three Dynamic models, the 1.6-litre petrol also costs £13,395, the 1.8-litre petrol comes in at £13,895, and the 115bhp JTD tops the price list at £14,395.

Out on the road, the JTD engines naturally have the mid-range pull, but the surprise of the range is maybe the 1.6-litre petrol. You might expect the 102bhp this engine produces to be rather overwhelmed by the extra size and weight of the Multi Wagon bodywork, but it seems to cope pretty well, taking the car from 0-62mph in 11.4 seconds and running very sweetly at a motorway cruise.

Top performer, of course, is the 1.8 petrol, which squirts to 62mph in 10.8 seconds. But for a combination of performance and economy, the 115bhp JTD is the one. It gets from 0-62mph in 11.2 seconds, and matches the 80bhp JTD's economy figures of 61.4mpg extra urban, 37.7mpg round town, and 50.4mpg overall, as well as producing the same 149g/km of CO2.

Anti-lock brakes with electronic brakeforce distribution are fitted to all six versions. Only the 1.8-litre petrol cars come as standard with an electronic stability programme, although it is optional on the others. If you go for ESP, which you cannot do with the Active, then three other systems are slung in with it. They include brake assist, anti-slip regulation to control wheelspin, and a special device which summons up torque to prevent the car from skidding if the driver goes down the gearbox too abruptly on a slippery surface.

A standard feature on the Multi Wagon, as on some other Fiats, is a little "City"button down by the left of the gear lever. Press it while driving about town and suddenly parking and negotiating narrow turns and roads becomes a joy. The button activates the Dualdrive electronic power steering, and takes the strain out of shoulder wrenching manoeuvring as you try and shoe-horn the car into the tightest of spaces A blessing in York.

Updated: 10:49 Friday, March 14, 2003