IT'S 2004 and what better way to start the New Year than taking a look back over the past 12 months as NIGEL BURTON selects his personal favourites and anticipates some of the new metal coming our way.

THE last year has not been kind to car companies. Fiat and Ford both found themselves strapped for cash and looking for new ways to stem the red ink on quarterly financial reports.

MG Rover was forced to admit its plan to rebuild with a Chinese partner had collapsed and so did its sales in the last few months of 2003.

Even BMW faced almost unheard of criticisim over the styling of its new models, some of which sent buyers scurrying into rival dealerships.

The Motor Show returned but no one seemed bothered.

Even the Brits in Formula One faced the end of their careers (Jenson Button excepted) at the top flight of the sport.

It seems as though no one had a reason to be cheerful as the year came to an end.

So were the new breed of 2003 a load of runts or were there a few gems? Hewr are my favourite models from the thousands on sale.

BEST CITY CAR: The competition in the small-car class was red hot in 2003.

Buyers are no longer prepared to put up with low-rent interiors, noisy handme-down engines and gawky styling.

They want the lot and, surprisingly, it was Fiat that gave it to them.

The Panda may be named after a model that summed up everything that was bad about this class but it shares absolutely nothing else.

It takes to the road powered by a new 1.2-litre engine with a smartly-styled body that's got bulges in all the right places and a super interior that feels bright and modern. The Panda is a thoroughly good car.

If anything can help lift Fiat's spirits after a depressing year this little beauty can.

Runner-up: The Toyota Yaris. It may be a few years old now but that only means Toyota dealers are willing to knock a few quid off the asking price.

The Yaris remains a terrific small car with comfort and refinement rivalling models costing thousands more. Of its Japanese rivals only the Jazz comes close.

BEST SMALL CAR: Call me biased but I reckon Nissan has the small car thing licked with the latest Micra.

It looks unusual and is probably more of a uni-sex car than its predecessor but those startling styling sweeps only tell half the story. From the smart interior to the unusually large options list, the new Micra is a thoroughly modern small car.

It drives well and handles with precision, even if the runner-up in this class probably has the edge on ultimate driving manners.

Another stunna from Sunderland.

Runner-up: The VW Polo is as tough as a tank, looks good in a Germanic kind of way and drives superbly, thanks to careful use of sound-proofing material and well-designed engines. It also holds its value very well.

BEST MEDIUM-SIZED CAR: It really is remarkable to me that one car has reigned supreme over this class for so long.

The Focus may be getting on now (a new model is just around the corner) and the interior has dated badly but there is absolutely nothing wrong with the keen handling, sharp steering and willing engines.

The TDCi model interoduced in 2003 is a cracking car and Ford certainly has its work cut out coming up with a replacement that is even better.

Runner-up: Controversial this one I know, but if the criteria by which a good car is judged includes reliability, convenience, decent handling and a roomy interior, then the Nissan Almera is something of an unsung hero.

BEST LARGE CAR: It's a sign of changing times that the winner of this category doesn't wear a Ford or a Peugeot badge. No, the best large car you can buy nowadays is a BMW 3Series.

There are too many 3-Series on the road to really call them executive cars these days but that isn't to decry the engineering that goes into every model.

Unfortunately every one seems to own a 3 these days and the interior isn't as roomy as that of many rivals.

Runner-up: Another blow for mass manufacturers. The runner-up has to be the Mercedes C Class.

BEST EXECUTIVE: It may look as though it fell out of the ugly tree and hit every branch on the way down but the BMW 5-Series remains the benchmark large executive car.

The build quality is terrific, the engines sublime and the handling still out of the top-drawer. No one could want or need any more car than this.

RUNNER-UP: The Mercedes E Class has consistently played the bridesmaid to the BMW's bride and nothing in 2003 came along to change that. Still a damn good car, though.

BEST SPORTSCAR: One day a car will come along that challenges the Mazda MX5 as the world's best-loved sportscar.

Unfortunately it won't be the MG TF, a good car that has finally received the power and handling it deserved ten years ago, nor the Toyota MR2, a wicked drive let down by a total lack of practicality.

The car that will probably unseat the MX5 will be the model Mazda is now working on that will see the little twoseater finally pensioned off in 2005.

Runner-up: The dinky Diahatsu Copen is a tiny sportster with a big heart and a folding roof like a Lexus Coupe. What more could you want?

BEST 4x4: This has to be the toughest class to judge. If you look at off-road ability, then the Land Rover Defender is still the best way to go.

Unfortunately, the Defender is ancient and its levels of refinement would embarass a modern tractor.

Certainly the most impressive 4x4 to come along in 2003 was the Porsche Cayenne, a vehicle that finally nailed thye myth that anything with off-road ability couldn't handle tidily when it was on it.

A top speed of 165 mph is, frankly, insane for a car as big as the Cayenne but isn't that what Porsche ownership is all about?

Runner-up: Go to Saudi Arabia and one car above all others is used to negotiate the treacherous deserts: the Toyota Land Cruiser.

Good off-road, built to take it and peerlessly reliable UN peace-keepers love 'em and I can see why.