Over 25 years ago, the seeds were planted for the smart fortwo. Back then, Mercedes-Benz tabled a design that they didn’t feel could meet their stringent safety requirements with 1972 technology.

Ten years ago, technology caught up, and a creative and technical collaboration between Mercedes-Benz and Swatch brought the smart fortwo to the world. Since then, almost 800,000 of the iconic little car have been sold worldwide.

Now, the second generation smart fortwo is arriving on U.S. shores. It is sure to turn heads in this land of super-size everything. Will it succeed amid a sea of Hummers and Expeditions? More importantly, will it survive?

When we were invited to have some seat time in the smart fortwo before it was available to the general public, we heard it all from our friends and family: “It looks too small to be comfortable.” “Just wait until you get in a wreck!” “Do you have to rub it on the carpet to make it go?”

All jokes aside, we were pleasantly surprised at this little miracle of engineering. Before we go further, let us emphasize that we were amazed at how safe the smart fortwo is. In fact, we would feel safer in it than in some larger cars we have driven. We’ll talk more about the safety aspect later. Be prepared to throw away your preconceived ideas of what a car this size must be like. You are almost certainly wrong. We know; we were wrong and had no choice but to revamp our own opinion after driving it and seeing its capabilities.

Exterior Styling
First though, let’s get some basics out of the way. The smart fortwo is only 8.8 feet long (106.1 inches). This means that you could fit two of them in a typical parking space end to end! It is available in three models: the smart fortwo pure at $11,590, a nicely-equipped smart fortwo passion at $13,590, and a convertible smart fortwo passion cabriolet at $16,590. The optional ‘Comfort Package’ with heated leather seats and power steering is something which we think most people will choose to get.

A striking feature on the exterior of the fortwo is the sharp black (optionally metallic silver) line that runs along the bottom of the sides and flares up behind the rear doors over the top of the car. This is a fantastic example of form following function: this is the smart’s tridion safety cell. The other body panels (available in six colors: black, yellow, white, blue, red, and silver) are actually changeable should an owner wish to mix and match (no word on the cost, however).

Interior Styling
Inside, the fortwo is spartan and purposeful, but it doesn’t feel cheap. In fact, everything feels solid, from the way the doors close to the buttons on the dash.

The smart fortwo is 5.1 feet wide, and also 5.1 feet tall. By comparison, a Mercedes S-Class is a foot wider, but the smart is actually 3 inches taller! That translates into a cabin which can comfortably seat two adults that are well over 6 feet. smart claims that a 6′5″ adult can sit comfortably; we’re not that tall, but based on the amount of headroom we had, we believe them.

The instrument cluster features a large speedometer mounted in the traditional location, with all controls for the mp3-CD capable radio and A/C system within easy reach of the driver and very intuitive. Our smart was equipped with an optional TomTom navigation system; a nice touch.

The fortwo has a surprising amount of cargo room: 7.8 cubic feet up to the beltline; 12 cubic feet if you fill it to the roof. That’s enough for golf clubs! An optional fold-flat passenger seat provides even more carrying capacity.

Safety
We said that we were surprised to find out just how safe the smart fortwo is. Its tridion safety cell wraps the occupants and protects the integrity of the cabin much as a roll cage in a race car would. The short length of the car, and its wheelbase being almost as long as the car itself, aids the tridion cell in protecting the occupants. Most crashes will actually have to involve one of the wheelbases, with tires acting as extra bumpers and axles helping to dissipate energy.

We saw a smart which had been rear-ended at 50 mph; the doors could still be opened and the seating area was unscathed! This is part of why the smart fortwo has earned a 4-star crash rating in the U.S.

Powertrain & Performance
The fortwo is rear-engine, rear-wheel drive, and is powered by a 3-cylinder 1.0 liter engine. The transmission is a automated manual (think BMW SMG or Ferrari F1) 5-speed transmission. This was one of our only two complaints about the car. When we left the car in automatic mode, as we think most U.S. drivers will do, the time between shifts seemed excessive. It is possible that this was just our pre-production model, however.

The smart isn’t going to win any races: 0-60 mph comes in 12.8 seconds. However, acceleration is adequate for highway merging, and we found the car to be quite stable even at speeds of 80 mph.

Where the fortwo really shines is fuel economy. It is rated at 40 highway/33 city using the EPA’s 2008 standards. Keep in mind that all 2008 models will have lower numbers that those you are accustomed to due to the new standards. By 2007 standards, the smart fortwo would have been rated at 45 highway/40 city. For those with long commutes or those who believe in global warming, the smart is, well, smart.

[View with PicLens]

Driving Impressions
We drove the fortwo on a combination of busy city streets and highways. Driving in town was a pleasure, with the maneuverability and easy parking of the smart really shining. The smart was comfortable on the highway, although its short wheelbase could make for a slightly rocky ride at times.

We mentioned above our impression of the transmission. Our only other complaint was with the air conditioning in our test model. It had trouble keeping up with a humid day in the mid 70s. We hope that this was also due to it being a pre-production model. Once we get to drive one in the Texas summer, we’ll let you know what we really think.

Conclusion
The smart fortwo is being brought to the U.S. by Penske Automotive Group (PAG). You know Penske from motorsports, but did you know that PAG is the second largest automotive retailer in the U.S., with 165 dealerships in 19 states?

We got to sit down for dinner with Roger Penske, chairman of smart USA, Penske Automotive Group, and Penske Corporation, a transportation services company. With his company’s expertise and network of dealerships, he has been able to provide a network of service and sales support nationwide. His enthusiasm for the future of smart in the U.S. is easily evident and definitely contagious.

While there were some secrets he wouldn’t divulge, he did tell us that by the end of 2007, over 30,000 deposits in smart’s “$99 Reservation Program” had been placed. While production figures for the first year have not been released, we believe that more than the first year of smart fortwo’s in the U.S. has already been spoken for.

That is a lot of smart customers!

Base Price: $13,590
Price As Tested: $15,380
Date Available: January, 2008
Body Style: 2-door compact
Engine & Torque: 1 liter, in-line 3 cylinder, gas; 70 hp @ 5800 rpm; 68 lb ft @ 4500 rpm
Transmission: 5-speed automatic manual
Wheels & Tires: 175/55R15 rear; 155/60R15 front
Warranty: 2 years/24,000 miles
Fuel Economy: 33/40 MPG
0 – 60 MPH: 0-60 mph: 12.8 seconds
Top Speed: 90 mph

The marketers like to tell us that cars like this–the Chevy Aveo, Toyota Echo, and so on–are perfect for young kids going off to college, buying their first car. Or having it bought for them. But we were young not so long ago, and we remember feeling like we’d never be caught dead in a tiny tin box like that. No, take a look around sometime and see who’s really behind the wheel of cars like those, and you’ll see that most of the time, it’s normal, middle-age folks. Not kids with dyed hair listening to pop music, but folks in button-down shirts listening to NPR.

Why would such people be driving such entry-level wheels? Chalk it up to smarts. These are folks who take no enjoyment from the act of driving, but still have to get to the proverbial Point B without breaking down halfway from A. These people want basic transportation; the car might as well be an Amana fridge, so long as it starts every time and has the basic convenience features that make life livable.

Of course, those cars get reviewed, too. Even though it’s every automotive journalist’s most-feared assignment–driving around for hours in a tippy little econobox–somebody’s got to do it. So when Hyundai introduced the new-for-2006 Accent, they did a smart thing by shipping us all out to La Jolla, California to do so.

As it turns out, though, the high-end luxury digs and fancy meals weren’t necessary. The Accent is a genuinely decent car that survives on its own merits.

First off, it’s not bad-looking. In a segment that seems to be dominated by no style at all–the Aveo, Echo, et. al. look like the toy cars of a kid who doesn’t like toy cars–the new Accent actually has some neat touches. It’s got a real sedan shape, and an utter lack of that dorky, awkward too-tall-and-skinny-for-its-own-good shape. Plus, there’s that attractive front fascia and jeweled-looking taillights. All said, the Accent is probably the best-looking choice in the sub-compact class.

The same can be said for the interior. There’s nothing groundbreaking here; it’s all pretty much standard fare. But the Accent doesn’t suffer from the substandard materials we’ve seen in the other cars in the $12,000 price category. In fact, from the inside, the Accent feels like a much more expensive car (like a Civic or Corolla). Plus, standard features like an adjustable rear headrest set it even further apart. Niceties like power windows and doors, a CD player, and so on remain optional.

Best of all, it’s not cramped inside, as most subcompacts are. It’s significantly larger than the outgoing version–by a couple inches in most directions–and it’s said to be bigger inside than a Civic. The tape measure says passenger space hits 92 cubic feet, which is impressive. The seating position is also raised, giving a better view down the road and in traffic. Seats are relatively comfortable as well. We took an hour-long trip with three passengers, and didn’t hear a single complaint about close quarters.

Obviously, this is not the segment that driving enthusiasts shop. 100 horsepower is standard fare here–the Accent’s 110-horse inline four actually trumps the Toyota and Chevy. Variable valve timing makes the most of the meager 1.6 liters of displacement, although it’s not tuned for high-end horsepower in the same way as a Civic Si, for instance. We do recommend the manual tranny, though–with the four-speed automatic we recorded a lethargic 10.2 seconds to sixty mph. (Again, that’s standard in the class, but still painful–the stick shift should lop at least a second off that time.) The Accent’s powertrain also isn’t too coarse–another rarity–and might be the quietest car in the class.

The list of standard mechanical equipment is impressive. Disc brakes with ABS are at all four corners–a rarity, but much appreciated. Six airbags are also included. A tilting steering wheel and split-folding rear seat are unexpected niceties as well.

Moreover, the Accent has impressive handling. Where other cars feel as tippy as an 80’s-era SUV, the Accent merely brings to mind your average small sedans. It definitely feels more substantial than its 2,240-lb. curb weight would lead you to expect. It’s no corner-carver, but twisty mountain roads didn’t upset it, and neither did downtown potholes. We cruised for nearly an hour at close to 90 mph, and felt at-ease the whole time–other cars in the class would have you easing off the gas at 80.

[View with PicLens]

Still, we’re looking forward to a hot-hatch version, like the SR shown at SEMA. That little three-door promises true fun, and it even looks kinda sexy. Of course, the base-model three-door hatchback that we expect is also forthcoming will probably lack most of the fun bits, but it will, at least, be practical as well as economical. Speaking of which, fuel economy–which is a major selling point for a car like this–is a he high end of the spectrum, even in the subcompact class–EPA numbers are 32/35 city/highway; bested only by the Scion xA.

The base Accent sedan will come in at under $12,000. Options like air conditioning and alloy rims will push the price closer to $14,000. That’s right in line with the Echo and xA, although the Aveo is cheaper. Still, even without the Hyundai warranty, we’d choose the Accent over those cars.

In the next couple years, the subcompact class will become a lot more crowded. Maybe it’s because the manufacturers are betting that rising fuel costs will put us all in a downsizing frame of mind, or maybe they figure we can cut traffic problems in half if we do the same to the size of our cars. Whatever, we’ll soon be seeing mini cars from Honda (the Fit, due here roughly in a year), Nissan (from the Japanese-market; the Versa should arrive on our shores in a year or so as well) and Toyota (the Yaris, which replaces the Echo, to be introduced next month–look for it in these pages). Once the field has that many players, the choice won’t be as easy as it is now. But in the meantime, the Accent rules the roost, in the baby-car segment–and with that trademark 10-year, 100,000 mile warranty, Accent buyers today will still be covered longer than those who wait two years to buy one of the competitors. For now, the Accent is a definite buy–assuming that’s what you’re into.