By Andrew English Published: 7:00AM GMT 22 Feb 2010  You don't really expect to enjoy the economy version of anything, but we were hoping to like the second-generation Polo Bluemotion better than we did the first incarnation.  Volkswagen had been left with a big space to fill with this new Polo model, this year's European Car of the Year. The old Polo Bluemotion was the most economical car in Britain, but it drove like it, too, with a noisy engine and slightly weird looks that marked it out as the hairshirt variant.  The latest model includes some new technology as well as refinements of existing stuff. Its three-cylinder, 1.2-litre TDI engine is effectively VW's 1.6-litre four-pot with one cylinder lopped off.  Technical highlights include a gearchange indicator with optimised gear ratios, which saves about 3-8 grams of CO2 per kilometre (depending on how hard you drive, of course), optimised aerodynamics including a lower ride height and blanked air ducts, worth between 1-2g/km, regenerative braking that recharges the battery on over-run (2-3g/km), low-rolling resistance tyres (2-4g/km) and a start/stop system (4-8g/km).  "Bluemotion is the pinnacle of what is achievable in fuel consumption and emissions," says Martin Stamm, Polo diesel engine chief.  To remind you, the old Polo Bluemotion was a 1.4-litre device that could manage 72mpg Combined, emitted 99g/km of CO2 and had a 715-mile range.  The equivalent figures for this new model are 83.1mpg, 90g/km and 840 miles, so it has moved the game on but is it nicer to drive?  First impressions are of a more refined machine, with mechanical noise still in evidence, but not intrusively so.  You can hear the whirring unit and feel some vibration through the steering wheel and the gearlever, you don't get that buzzing through your fingertips as you did in the old model.  The gearchange indicator works well, but encourages lots of near idle-speed running, enough to make you fear for the longevity of the exhaust-gas recirculation valve, although VW says it has passed all its tests with flying colours.  The start/stop system works pretty well, refusing to activate until the engine has warmed up, although there is a noticeable wobble through the frame when the engine restarts.  These are small complaints, however, and there's a pleasing, hewn-from-solid feel about the little VW. The immaculate if boring fit of the interior, the impressive warp and weft of the seat materials and the rounded, unthreatening coachwork mean the Polo seems likely to be a loyal and long-lived servant.  The ride is not the last word in supermini comfort, but the low-rolling resistance tyres are not impossibly harsh and, while they don't quite have the grip of normal tyres, they are a marked improvement on the first generation eco rubber.  VW is aiming to be the world's most environmental car-maker, with 80 models on the way that will emit less than 140g/km of CO2. As befits a car at the forefront of this campaign, the new Bluemotion Polo is one of the best and most effective sub-branded eco cars on the market.  It's reasonably refined and startlingly economical, but like all of these high-tech fuel sippers it makes little sense financially unless you plan on driving an awesome mileage in an incredibly short time.  For retail sales to blossom these cars need a more favourable tax situation to offset their high purchase costs. In the fleet market these tax conditions exist at least in part, and that is where the majority of Polo Bluemotion cars will end up.  Bearing in mind that these cars will be back on the used market within a couple of years, perhaps this is one of the few VW's that makes more sense as a secondhand buy than it does new.  Tested: Volkswagen Polo Bluemotion with 1,199cc, three-cylinder, TDI 12-valve common-rail turbodiesel, stop/start technology and regenerative braking. Five-speed manual transmission and front-wheel drive  Alternatives: Ford Fiesta Econetic, from £14,745; Vauxhall Corsa Ecoflex, from £11,590  Verdict: Refined and economical, but too expensive  On the stereo: Jump Start My Heart by U2  Telegraph rating: Four out of five
This year's Car of the Year winner, Volkswagen's Polo, gets a new,    low-emissions BlueMotion derivative, but is this an environmental hair    shirt?