SEAT is to unveil its first station wagon at the London Motor Show later this month. The new five-door Codoba Vario, which brings the importer's expanding range to eight models, will become Britain's most compact estate when it is launched in January.

Fleet buyers will be offered the engine options of a 100bhp variable inlet 1.6-litre petrol unit and a 90bhp TDI intercooled turbo diesel - the latter capable of up to 67mpg. Vario's 4.144m length is the same as the existing Cordoba sports saloon, but has a luggage bay of 390 litres which can be expanded to 1,250 litres by folding down the rear seats.

Prices are likely to be from £12,500 - in line with the four-door Cordoba - and standard equipment will include air-conditioning, a roof rack with protection rails, power steering, remote central locking, electric front windows and a driver's airbag. It will also carry a three-year unlimited mileage warranty.

Kevin Rose, director of SEAT UK, said: 'Vario is unique. The car brings all the driver enjoyment of a sports hatch, yet with the big advantage of a large and flexible estate luggage bay.'