Ford's Mondeo is winning accolades in Europe and Australia.

Ford is back in the medium car market with a bang.

Its new Mondeo has arrived with accolades from Europe and a far cry in style and presence from the first model which struggled until its demise in 2002.

The four models all score top marks for fashion, safety, space, chassis dynamics, and in the turbocharged diesel and petrol versions, sparkling performance as well.

Pricing has sent rivals scrambling for their calculators.

The entry level 2.3-litre LX sedan starts at $29,990 and that includes stability control, seven airbags, anti-skid brakes, air conditioning, six-speed automatic transmission and front power windows.

Although classed as medium or mid-sized, this third generation Belgian-built Mondeo is only marginally shorter than the previous (EA-EF) Falcon.

Interior space and boot capacity are class leading.

The other models in the range are the Zetec at $34,990 in sedan or hatch, the six-speed automatic turbo diesel TDCi sedan or hatch at S37,990 and the six-speed manual XR5 turbo petrol hatch at $41,990.

The Zetec and TDCi add climate control, cruise control, trip computer, 17-inch alloy wheels, six-disc CD, multi-function steering wheel, parking sensors, rain-sensing wipers and automatic headlights.

The XR5 adds 18-inch alloy wheels, keyless start, leather trim, sports suspension, six-speed manual transmission and a more complex if distracting instrument pod and screen.

From any angle the Mondeo is a smart and sophisticated package.

It has good looks dressed up with some striking trim, particularly around the lower grille on all but the LX.

The glitz is also evident in parts of the otherwise tasteful interior which has a spacious yet cocoon-like feel.

Seats are well shaped and supportive and the steering wheel adjusts for height and reach.

Rear seat space is generous although the legroom comes at the expense of front seat travel which won't suit tall drivers who prefer to stretch out.

On test were the turbo duo, the TDCi and XR5, both hatches.

The turbo diesel is powered by the proven 2.0-litre turbo used by Volvo, Peugeot and Citroen.

Output is 96kW and 320Nm of torque with an extra 20Nm available when the engine is under full load between 1500rpm and 3200rpm.

With multiple choices through the crisp and decisive six-speed automatic transmission, instant thrust is always on tap.

Initial response is strong and matched by a seamless elastic surge mid-range.

There is some tell-tale diesel clatter on idle but otherwise noise levels are low.

The TDCi's combined fuel use figure is 7.3l/100km although open road driving drops it well into the sixes.

A neat touch in the diesel is the cap-less filler neck — just open the flap, poke in the low-flow nozzle in and pour.

Performance is strong and flexible at low-to-medium engine speeds such that it will shade many so-called performance cars.

The chassis is well balanced with near neutral handling, flat cornering and a firm, compliant ride.

The XR5 engine is a 2.5-litre, twin-cam, turbo-charged, front-drive unit that Ford borrows from its offshoot Volvo, where it is used in the S40 T5.

Output is 162kW at 5000rpm, but more importantly 320Nm of torque from just 1600rpm through to 4000rpm. Like the diesel, performance is akin to the thrust of a giant uncoiling spring only sharper and wider. Breathe on the throttle and it's off, delivering strong and flexible punch over a wide rev range.

The manual-only, six-speed gearbox is slick and precise and the ratios are well spaced to explore the engine's expansive punch.

Combined fuel use is 9.5l/100km, although it takes self-discipline to match that in normal use.

With firmer suspension and a lower ride height, the XR5 rides, handles, steers and stops as if it speaks the same language as the driver.

It is taut, secure and great fun but with a maturity that suits its place in the Ford line-up.