Air-cooled, rear-mounted, Italian engines make a very distinctive sound, one which I find oddly comforting.

Maybe that's a sign that time is a thing I've already seen plenty of, or it's just a fondness for old things.

Either way, the first turn of the key in the Fiat 500 TwinAir, was indeed comforting.

My inner cynic offers his earnest explanation for the delightfully airy buzz emanating from beneath the hood – "Fiat's spanner monkeys have engineered it that way to match the character of the 500".

Sadly, he may be, at least partially, right.

The 500 – the second coming – was always going to be a winner for the Italian manufacturer. Launched in 2007, it quickly gained an adoring fan base keen not just to own the diminutive icon but to make it the automotive embodiment of themselves. And should you have the time, there are more than half-a-million-plus combinations to try in your quest to find "your" car.

It's difficult not to fall for the 500's friendly face and the cute persona it exudes from every curve and shutline.

After an hour on the Fiat website, stylising my virtual 500 with all the extras sure to offer it a macho edge: Side-skirts, spoilers, air dams and racy stripes and matt paintwork it still looked as threatening as a piece of fruit.

Therein lies its appeal – in no way is it intimidating.

Imagine it's your first driving lesson and the driving instructor arrives in a 500 – you'll be skipping through the garden gate, keen to get on the road. This appeal continues in the cabin. As you open the door the first thing to meet your eye is the swathe of colour sweeping across the dash – a very retro touch, almost '50s diner.

The seats are very well bolstered, the multi-function steering-wheel adjusts for rake and the combined speedometer/rev counter is easy to read.

Fiat has thought hard about the 500's driving position and as a result, the high-seating position, and well-placed gear-change enhance the driving experience. I thought when first climbing aboard that the seat was raised to its highest setting, but that was not the case – it just is that high.

It must be noted that, should you embark on an accessory frenzy, ensure you have a spending limit as, I imagine, enthusiasm could soon overtake common sense and the bill could well soar.

That said, the 500 offers levels of equipment more usually associated with cars of a far higher segment. Even opting for the basic Pop model will offer ABS anti-lock braking, remote central locking, seven airbags, electric front windows and door mirrors, an MP3-compatible CD player and Dualdrive electric power steering fitted as standard.

Nine versions of the 500 are available, embracing three trim levels – Pop, Lounge and Sport.

A choice of four powerplants is available; a 75 bhp 1.3-litre 16-valve MultiJet turbo-diesel, a 1.2 litre 8-valve 69 bhp unit and a 1.4-litre 16-valve powerplant. And last to arrive was the TwinAir 900cc two cylinder on test here. Beyond the comforting buzz, could two cylinders really offer the kind of performance wanted by the modern motorist?

The answer must be a resounding yes. Assisted by a turbo-charger, the TwinAir develops a healthy hit of torque from around 1,900rpm, producing better performance figures than the four-cylinder 1.2-litre version of the 500 – and that applies to the consumption figures too. Emissions of just 95g/km mean there's no road tax to pay and claimed combined returns of close to 70mpg can only be a good thing in the current climate.

For many years, Fiat has built small cars, Pandas, Puntos, 127s and Unos – all cars for city living. It is rare, however, to build an icon. Austin had its Mini, VW its Beetle, both of these have been re-launched to a new audience. Fiat joined the club with the re-launch of the 500 five years ago. Delving into the archives and pulling out the two-cylinder engine and reworking it for a world that needs to economise may be Fiat's most inspired move yet.