THE Germans may have created the market for chic and cuddly remakes with the Mini and Beetle, but the Italian house of Fiat is now taking its own trip down memory lane with the irresistible 500.

First, a bit of memory. The Cinquecento 500 dates back to 1957. Fiat had such a good run with this cheap and practical model (adjectives applicable to the Mini and Beetle too) that it churned out that 500 for two decades.

Just as the world moved on from other cheap and practical cars, it moved on from the 500 too.

Then last year, half a century after the birth of the original, Fiat unveiled its new take on the Cinquecento 500. And the world fell in love all over again.

The irrepressible small car measures less than 3.6m in length, and is shaped like a Botticelli creation - rounded in all the right places. And disarmingly charming.

The visual treat continues inside. The first thing you notice is the front section of the fascia, swathed in body colour. Rose red, in the case of the test car.

Its instrument gauges are housed in a very funky single dial. The new red-in-chrome Fiat emblem on the multi-function steering wheel actually looks good (as opposed to cheesy). Its old-fashioned door levers are great to look at and to touch.

Beneath its retro surface, the 500 has hip, modern features, such as voice-control, Bluetooth pairing and an iPod interface. It has an array of cubby holes for knick-knacks, but they are - like the car - not big. The two drink-holders in front are just nice for cups of espresso.

Just being in the car puts you in a cheerful disposition.

And despite its diminutive self, it will seat four medium-built adults. There is even a modest boot. It is not as roomy as the Mini, which is a slightly larger vehicle.

The 500 is priced nowhere near the Mini. Although it is a tad pricey for a small car, it is inexpensive compared to the Bavarian British remix.

That's why you might forgive the cheap hard plastic panels in the Fiat. As well as its less than perfect demeanour on the go.

Start the engine (with the coolest-looking key since Alfa's retired enamel range), and the 500 transports you into a bustling pizzeria. There is just so much going on.

You hear the engine chugging and feel the steering buzzing. Engage the clutch-actuated semi-auto transmission and you are in for dough-kneading progress. This is typical of such transmissions.

As such, the full manual is recommended. It lets you exploit the modest output of the 1,242cc engine the way you deem fit. The manual is also $3,000 cheaper.

The 500 1.2 is understandably leisurely. For something quicker, you will need to fork out $10,000 more for the 1.4-litre version, which comes with a sunroof (as opposed to the 1.2's fixed glass top).

The car has a pretty crashy ride, but it does hold up decently when called on to make swift turns. If only it had a bit more feel in its over-easy steering.

So, here's the bottom line. The 500 is one heck of a car to behold, it is steeped in tradition and its interior is, oh, so hip. Not only that, the car is frugal with fuel and it has been rated one of the safest in its segment.