The Ford S-Max was declared the winner following a closely fought competition in which 41 contenders for the award were reduced to a shortlist of just eight - the Citroen C4 Picasso, Fiat Grande Punto, Ford S-Max, Honda Civic, Vauxhall Corsa, Peugeot 207, Skoda Roomster and Volvo C30.
The 'Car of the Year' is an international award, judged by a panel of 58 motoring journalists from 22 European countries.
"We are absolutely delighted the S-Max has secured the ultimate accolade, especially against such worthy competitors and in a year that has seen a record number of eligible contenders," said John Fleming, president and CEO, Ford of Europe.
Ray Hutton, the president of the 'Car of the Year' jury said: "This was a very close contest with all eight of the finalists deserving a place on the shortlist. It is clear from the voting that the Jury is impressed by the concept of the Ford S-MAX: a spacious and versatile car that drives like a sports saloon. Its victory is well-deserved."
The Car of the Year 2007 was judged by a group of seven publications: Auto (Italy), Autocar (UK), Autopista (Spain), Auto Visie (Holland), L'Automobile Magazine (France), Stern (Germany), and Vi Bilagare (Sweden).
Roelant de Waard, Ford of Britain chairman and managing director, with the Car of the Year