Holden Cruze: Hey good looking - now you're cooking

Holden's Cruze SRi is a vast improvement on its predecessor. Photo / Supplied

And now for something completely different. Let's put the following in a sentence together: Holden Cruze, high-tech, fun to drive.

Hard to believe, but Holden's Cruze series-II has moved from Korean to Australian production and gained a new level of refinement in the process.

The biggest advance is the addition of a 1.4-litre turbocharged direct-injection engine to the range - which is known as the iTi, for "intelligent Turbo induction". This is a very European powerplant in principle: small capacity, relatively large outputs (103kW/200Nm) and excellent fuel efficiency, with 6.9 litres per 100km for the six-speed automatic version.

If it seems very European it probably is: the Cruze iTi engine, electric power steering system and Watts Linkage rear suspension system are lifted straight from the state-of-the-art Opel Astra. Could the Cruze finally be a car you can mention in the same breath as a Mazda3 or Volkswagen Golf?

Well, yes. The iTi engine sounds a little coarse under load but is otherwise a marvel of crisp response and parsimony - not quite as much character as the 1.4-litre TSI 90kW Golf but more power/torque. The electric power steering is too light and inconsistent just off centre, but the new suspension gives the Cruze a sophisticated ride-handling balance - albeit still comfort-oriented and therefore well suited to the kind of driving this car will probably undertake.

Our iTi powertrain came wrapped up in the flagship Cruze SRi-V specification, which brings a subtle body kit and some very elaborate badging. Bit pretentious as this is not exactly a sports sedan, but we'll forgive it because the car looks great and it is about twice as engaging to drive as the previous Cruze.

On paper, the SRi-V looks tempting with leather upholstery, power seat adjustment, keyless start, premium DVD audio system (including a hard drive that can record live radio) and satellite navigation. It's a Cruze-with-the-works, although it still lacks Bluetooth cellphone connectivity and the interface for the sat-nav is a mess: it doesn't have a touch-screen like the Commodore, relying instead on the combination of a scroll dial and an imposing array of
pushbuttons.

The SRi-V is a little fussy inside and I'd be tempted by the next-step-down SRi, which gives you all of the powertrain smarts and good looks, but less of the cabin clutter.

The iTi engine has breathed new life into the Cruze. It makes the previous 1.8-litre petrol (104kW/176Nm) redundant - although not according to Holden, which has continued the old engine as a price-leader in the CD model. Opt for that one in the entry CD and you'll save $2000 compared with the iTi. Please don't, by the way. It's unashamedly average and the thing that held Cruze back from critical acclaim last time around.

This is a great small sedan and the signifier of even better things to come, with a Cruze hatchback coming onstream later this year.

The Aussie Cruze

Building Cruze in Australia means a better car, but a more confusing range. Here's what you need to know about the new 1.4-litre iTi engine: it's almost as economical as the 2-litre diesel (if not as grunty) and nearly $4000 cheaper.

The iTi powerplant is an option on the entry Cruze CD model and standard on SRi and SRi-V versions. The only specification level to miss out is the pseudo-luxury CDX, which sticks with 1.8-litre petrol (avoid) and 2-litre diesel
engines.

The bottom line

Don't be fooled by the spoiler kit and elaborate badge: the Cruze SRi-V is not that sporty. But it is a fantastic small car: enjoyable, very efficient and comprehensively equipped. Try it, you'll like it.