DO you remember “badge engineering”? The theory went that a manufacturer could boost sales by sticking different badges on the same car. The British car industry used to do it all the time.

In the Sixties, you could walk into a dealership and have the “choice” of Austin, Morris, Wolsley and Riley cars that were almost identical. A decade later and all that was left of MG was a couple of warpainted Rovers and the only Triumph you could have was a Honda.

Thank goodness the car industry learns from its mistakes (apart from the British car industry which went on re-badging other people's cars until it finally went out of business). These days the shameful practice of badge engineering is almost dead.

Cars still have common parts, indeed, component sharing is more widespread than ever, but technology and sharp engineering allows them to look - and drive - very differently.

A Mazda3 is the perfect example.

To look at, it has nothing in common with a Ford Focus or a Volvo S40 but, beneath the skin, around 60 per cent of it is the same.

Traditionally, Ford builds a car platform (the basic DNA for a new model) and offers it to partners on a take-it-or-leave-it basis.

Not so the Mazda3's mid-sized C1 platform.

Cars in the medium hatchback class are massive sellers. Mazda and Volvo couldn't leave anything to chance – so Ford invited them to become equal partners in the project.

Each company hand-picked 30 of its its best engineers and packed them off to Ford's R+D base where they toiled away on the C1 platform.

The result is a series of cars that are the same – but very different.

The Mazda3's floorpan is dissimilar from a Focus but the two cars share front and rear subframes, suspension, steering, braking, safety and electrical components. The C1 program – which was the most ambitious of its kind – focused exclusively on commonality between the things a buyer would never see. The sheet metal was in the hands of each brand.

Of course, there are some things you would want to see carried over from a Focus. The way that car drives, handles and rides would be high on any car manufacturer's wish-list.

But you wouldn't want to inherit the Ford's boring looks or the cheaply trimmed interior.

And guess what? That's exactly what Mazda has done.

The Mazda3 mates sharp-looks with a great drive and a high quality interior. It's usefully cheaper than a Golf, yet holds its value better than any other car in the class making it a smart choice for private buyers.

The 3's boot is rather modest at 340 litres – that's ten litres less than a Golf or an Astra and almost a third less than the capacious Honda Civic – but the rear seats split fold 60/40 to boost carrying capacity to 1,360 litres all in. The glove compartment is larger than the norm and there's a small cubby in the central armrest but no hidden compartments beneath the seats. The door bins can't accommodate a map book (although the 2.2 Sport can be had with colour sat nav so you don't need one).

It's a safe car, too, with a top class 5-star rating from the European crash test agency and good marks in pedestrian impact injury tests. Active headrests, still a rare feature in this class, help reduce whiplash injuries in a collision.

Getting comfortable in the 3's smart interior is a cinch. The steering adjusts for reach and rake and the driver's sports seat can be ratcheted up and down. Heated front seats – with five bum-warming settings - came in handy during the recent Arctic weather, as did the heated front windscreen which saw the 3 ready for action in the mornings while my neighbours continued labouring away with de-icer and scrapers. Subtle mood lighting illuminates the centre console and the footwells.

A word too about the fine-sounding Bose stereo unit which eschews tiny hard-to-see buttons for big bold knobs and dials. Retuning the analogue radio is a finger-twirling delight. If you can't be bothered to find your favourite station before setting off, there are remote controls on the chunky leather-clad steering wheel.

The 2.2 diesel turbo has a decent turn of speed, but the engine is in a high state of tune and needs a few revs on the clock before it really gets going. Achieving 50mpg is easy.

The new Mazda3 is lighter than its predecessor which is the major reason why the steering is more responsive.

The ride is good, firm but well controlled, and front end grip very impressive. The Mazda3 is the sort of car you'd be happy to take the long way home.

Is it as good as a Focus? Without a back-to-back comparison I can't be sure but I can be certain that the Mazda won't disappoint if you're a keen driver.

To be a hit in this market a hatchback has to be a great all-rounder. The Mazda3 certainly ticks all the right boxes.

I like the way it looks – sharp creases and striking body lines are “in” with car designers at the moment – and I enjoyed the way it drives every time I got behind the wheel.

Can it break into a market dominated by the Focus and the Golf? Well, three's a crowd as the saying goes – Ford and VW had better watch out.

SPEC: Engine: 2.2-litre turbodiesel (high tune version in brackets) Max power: 150 bhp@3,500 rpm (185bhp@3,500rpm) Max torque:199 lb/ft@1,750rpm (295 lb/ft@1,800rpm) Top speed: 127mph (132mph) 0-62mph: 9.2 secs (8.2 secs) Fuel cons on test: 49.7mpg Equipment: Heated seats, heated front windscreen, electric windows all round, alloy wheels, twin exhausts, climate control, CD player with multi-changer and MP3 capability, alarm, immobiliser, split/fold rear seats.