The new 2008 Smart fortwo is poised to pull off the automotive equivalent of a hat trick. Its first crown is for being the most fuel-efficient non-hybrid car. Its second distinction is, at 2.69 metres long, it is the smallest new car on the road in Canada. To complete the hat trick, the fortwo is poised to lay claim to the title of least-expensive new car sold in Canada.

But the news does not stop there. Because of its über fuel efficiency, the Smart will most likely be eligible for a further $2,000 rebate from the federal government as part of the ecoAUTO program to encourage the purchase of very fuel-efficient vehicles.

If the incentive comes through, the final price of the made-in-France Smart will effectively be $12,990, just enough to beat the Korean-built Chevy Aveo/Pontiac Wave twins, which have a list price of $12,995.

This new price point is a significant psychological barrier. The Smart has always been seen as being frugal and green, but its high premium over other entry-level subcompacts from Korea and Japan has limited its widespread acceptance.

Price aside, the little Smart has gone through a complete makeover to ensure it appeals to North American tastes. It has grown slightly -- it's longer with a longer wheelbase and a wider track. But make no mistake, it's still very tall, narrow and short compared to anything else on the road.

At 2.69 metres (up from 2.5 metres) two Smarts can fit physically into a regular parking spot -- but a parking enforcement officer might disagree. Specific downtown parking spots (with reduced rates, no less) that fit only Smarts have popped up in Victoria and other pro-active cities. In a nose-in parking situation, with cars on either side, the Smart's extra-long doors can be a hindrance getting in and out of the fortwo.

What has not changed is a high seating position that allows occupants to look down on other small cars -- a very curious sensation when experienced the first time. The height, which gives the sensation of sitting in a micro-SUV, is not as welcome, initially, when taking the Smart at speed down a country road. Because of its height, it leans more than most cars on the road.

But once you get used to the fact it will not fall over, you can drive it like a go-kart. Lean with the car (I am serious), and it is actually a blast to take on corners.