Exeo buyers can initially choose from three 2.0-litre turbo engines – 141bhp and 168bhp diesels or a 197bhp petrol. All three are strong and flexible, although we'd stick with the lower-powered diesel because it strikes the best balance between performance and affordability. A 118bhp 2.0-litre diesel will join the line-up this autumn.

The Exeo is based on the previous-generation Audi A4, so it hangs on well through bends and feels stable on the motorway. That said, the standard suspension allows for too much bounce over high-speed dips and crests. Sport models have a stiffer set-up that cures this, but it's combined with big, 18-inch wheels, so the ride is unforgiving. The Exeo's steering could also do with more weight and sensitivity.

The Exeo uses some of the best VW Group engines but, while they're all pretty smooth, the diesels aren't as quiet as they are in some other models. There's some wind noise, too, although not so much as to make long journeys a chore.

The Exeo is competitively priced, and the 141bhp diesel makes a lot of sense as a company car. It averages over 50mpg and its carbon dioxide emissions which are lower than many rivals. Exeo resale values should also be reasonable if you avoid the petrol model.

The Exeo's interior shares many parts with the old A4 range, but that's no bad thing, because it was always one of the classiest compact execs around. Everything in the Exeo's cabin has a built-to-last feel, and the materials are top quality. On the downside, Seat didn't perform very well in our latest Reliability Survey, and Audi didn't fare much better.

Every Exeo has stability control and electronic braking aids to help you stay out of trouble. Front, side and curtain airbags, a driver's knee airbag and active anti-whiplash front head restraints are all on hand in case a smash proves unavoidable. Deadlocks, an immobiliser and an alarm help guard against theft.

The steering wheel moves for both reach and rake, and the driver's seat is height-adjustable, so most people should be able to make themselves comfortable. Unfortunately, the dashboard layout isn't quite as successful because the centre console is overloaded with small buttons that are difficult to tell apart at a glance.

There's enough space for four adults in the cabin, but a bulky transmission tunnel makes life uncomfortable for a fifth, and rear-seat passengers would be happier in the back of rivals such as the Ford Mondeo and Skoda Superb. Similarly, the boot is a good size, but it falls some way short of these class giants. You can fold down the rear seats to boost capacity, but they don't lay completely flat. There's no hatchback in the range, so some rivals are more versatile.

Even the entry-level S trim is well equipped, getting alloy wheels, climate control, four electric windows, cruise control, Bluetooth connectivity and an MP3 input socket. SE adds automatic lights and wipers, parking sensors and front-seat lumbar adjustment, while Sport includes sports seats, tinted rear windows and different interior trim. Range-topping SE Lux cars feature everything from leather upholstery to bi-xenon headlights.