The new Subaru Impreza series will be sold only in five-door form in the UK, although a saloon is available in America. There are no plans for a touring derivative.At launch there will be five versions, rising to eight early next year, and there is a simple two level trim series of R and RX which takes it from under £12,500 to almost £18,500 with the arrival of the WRX in November at under £20,000.While retaining the familiar and acclaimed flat four-cylinder boxer engine, which will also form the basis for a 2.0 diesel next year, there have been revisions to improve economy, pulling power and refinement. There is a choice of new five-speed manual or four-speed automatic transmission and insurance for the first models will be groups 4- 8.All models come with the permanent four-wheel-drive transmission providing high and low range modes, alloy wheels, climate control air conditioning, radio and CD, powered windows and multi-airbags. The higher RX specification includes body kit, cruise control, leather detailing, better sound system and larger alloys.The new Impreza is shorter and wider than the previous model with the wheels pushed towards the corners to improve room and handling while the engine sits lower in the chassis as well. It is roomier inside and the latest multi-link rear suspension increases boot space.It is a slipperier shape than before and this combined with the mechanical revisions have raised economy.Power is slightly raised to 107ps, with 104.7lbft now available at 3,200rpm, so it hits 60mph in 13.7sec and goes to 109mph in fifth, and 37.7mpg overall is 2mpg better than before.The 2.0 has been re-engineered and produces 144.6lbft but a reduced maximum output of 150ps, which lifts average economy to 33.6mpg in manual and 34.4mpg in automatic guise. Manual 2.0 models takes 9.2sec to 60mph and the automatic adds 2.1sec to that time while respective maximum speeds are 120 and 113mph.On the road the most impressive model in the new series is the 2.0 automatic.This is undoubtedly due to the way the power is developed at lower revolutions and the more compact ratios in the transmission. Changes are smooth, power delivery is flowing and it handles and stops with ability, agility and confidence.The 1.5 seemed hampered by a taller gearing which made it slower away from lights and needed much more gear changing to make good progress on open roads.It sounded like it was working hard as well and noise level was higher than in the 2.0.Both had a distinctive and stylish fascia but there was less imagination shown in the console and rear seating area but the bootspace is good and easy to use.The new Subaru Impreza is up against some tough opposition from the established European major brands but also from the revitalised Korean car makers, although no one offers the permanent four-wheel-drive at the price it is put down on the road by Subaru.If you need the confidence of permanent four wheel drive in a family hatchback, the Impreza is a particularly reassuring buy.