Volvo is turning out to be the butterfly of the car world. Like a caterpillar Volvo started out in a cocoon of safety, and in the 1990s began to shed its boxy skin for stylish designs and spread its wings with a convertible.

OK, it’s a bit of a stretch, but the entire line has been made over, and with the all-new 2008 C30, Volvo has launched one of its most ambitious designs to date. The C30 comes in Version 1.0 and 2.0 with equipment levels and some exterior trim being the main differences.

Small cars are hot

With crude oil hovering just below $100 a barrel, everyone is bracing for the high gas prices that are soon to come, so buyers gravitate to small cars and hybrids. The C30 is a sporty looking option that fits in this category. Think of the three-door C30’s exterior design as a cross between the BMW M Coupe and a Mini Cooper with a hint of Scion tC.

The C30 has a tallish green house, yet you sit low. The flowing profile and the all-glass rear hatch are the most appealing and un-Volvo-like features of this car. The nose, however, looks like it was directly taken from the S40 sedan. With out a doubt, the C30 is the smallest and most visually distinctive car in Volvo's model range.

Cozy interior

The C30 is short, checking in at about 8 inches less (overall length) than its platform-sharing S40 sedan sibling. As for inside amenities, the cloth front seats in the test vehicle were a bit firm, but legroom was good. The tall green house is great for headroom. The layout of the dash with brushed aluminum trim was excellent, and I love the “ribbon” center stack on Volvos.

Getting into the back bucket seats is tight and requires a bit of a gymnastics routine. Also the front seat adjustments would be better with standard power assist. Legroom is tight for adults, and you feel like you’re crouching behind front-seat passengers once seated. With the rear bucket seats folded down there is 20.2 cubic-feet of storage space, but items are very exposed due to the long side windows and large glass hatch rear window. A shade is optional.

Five for driving

The test vehicle was a Version 1.0 C30 and came powered by a turbocharged T5 five-cylinder engine that produced 227 horsepower. Volvo is big on inline five-cylinder engines, having perfected this design over years and years of development.

The horses are strong but have a bit of turbo lag out of the gate. However, the 236 pound-feet of torque is what really “sells” this engine all the way between 1,500 and 5,000 rpm. Fuel economy is not great at 19 mpg in the city and 27 mpg on the highway, but acceleration from 0 to 60 mph in 6.2 seconds and a top speed of 149 mph are pretty good! Not bad for a front-wheel drive vehicle that weights 3,200 pounds.

Ride experience

I have to say that I was a little surprised at how much torque steer the C30 exhibited. Not as much as the Dodge Caliber SRT4, but it was more than I expected. The ride was composed and comfortable around town with the car feeling very solid over bumps. Bending this car around the curves induced a little bit of body sway.

The "Mestra" alloy wheels with 205/50/17 tires held their own on variety of road surfaces.

I guess the biggest driving disappointment was the very large turning radius that made tight parking lot maneuvers a chore.

Safety is still a cornerstone

The C30 is a new take on a Volvo, but passenger safety remains a priority. The C30 features Volvo's air bag systems, front, side and patented front safety structure. Divided into zones, the frontal structure incorporates different deformation properties with the outer zones accounting for most of the deformation in a frontal collision. Four different types of steel are used. Apart from normal body steel, three different grades of high-strength steel are used: Different steel grades also are used in the rear to help protect occupants in the event of a rear-end collision.

Pricing strategy does not compute

The Version 1.0 test vehicle had a starting price of $22,700, and the addition of the $1,250 five-speed automatic transmission and the $750 destination charge brought the price up to $24,700. Add $475 for custom paint, $1,200 for the power sunroof and $625 (yikes!) for a Sirius satellite subscription, and the price zooms to $27,000.

Now get this: To get beyond a standard model you pay a one-time charge of $300 to provide you with the opportunity to purchase more options, accessories, exterior colors and interior combinations. Huh? Pay to have the opportunity to pay more?

Volvo claims that the Custom Build charge helps to offset the costs associated with making all these limited or low volume builds possible. Why not just increase the cost of the options to cover the higher costs? Volvo indicates that the special orders option opens up 17 more exterior colors and 12 interior color combinations.

I understand that individualizing your car is important. Scion has this formula down to a science and Bentley has made this standard practice forever, but when you want upgrades or custom options with those manufacturers, you pay specifically for those options.