It's refined in the way that it feels well put together, has relatively little wind or road noise, and has a very composed ride. The old Panda never stopped jiggling, the new one is far more comfortable. The seats are excellent and the driving position better - for me - than the Up. All these things constitute refinement. The handling prowess - quick steering and darty cheerfulness - are the clinchers.
The Up is softer and the weak engine makes less noise, and a less interesting noise it has to be said, and, er... that's about it! It has less grunt, it has a poorer seating position, the gear lever is not perfectly placed and the visibility to the front isn't as good as in the Panda either.
When I got into the Panda for the first time and drove it, immediately after the Up, the Panda felt like the better quality product. The detailed design of the colourful interior helped to enhance the quality impression after the austerity sans charm clinicity of the VW, but the Fiat also felt more solid and better screwed together.
Refinement is to some degree subjective, and the VW is certainly quieter pootling about, but the trade off in terms of charm and enjoyment doesn't feel like refinement, it feels like dullness - not quite the same.
