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ENGINE: all-aluminum 1.8-liter dual-cam 4-cylinder

HORSEPOWER: 122

TORQUE: 127 lb feet

0-60 mph: 9.5 seconds

EPA: 30 mpg city/ 36 mpg highway

2007 Nissan Versa
Program #2543

Thanks to $3.00 gas, the small car war is heating up again. And the latest soldier on America's front lines is the 2007 Nissan Versa. The Versa, like other new subcompacts, is stylish, and while small outside, is very roomy inside. But, naming your car the Versa, as in versatility, makes it sound like it offers much more.

Amid all the flash of luxury car and utility intros at this year's Detroit Auto Show, you could be excused for missing the arrival of the subcompact 2007 Nissan Versa. But, Nissan has big hopes for their latest small but tall city car. Indeed, the Mexican-built Versa joins an increasingly crowded entry-car segment with the also all-new Toyota Yaris and Honda Fit already carving out their slice of the pie. So for this newest Nissan to succeed, it has to deliver much more than just more miles per gallon.

To start with, the Versa is available in two useful body styles. A sporty 5-door hatchback hits the market first, to be followed by a 4-door sedan in the fall. The look is a chunky cross between compact and crossover, with the deep front end, high character line, and sharp Euro-style greenhouse, giving it a look close to its larger stable-mate the new Quest minivan.

Both hatchback and sedan are built on Nissan's "B" platform, which is shared with the popular Nissan Tiida and Cube in Japan, and the Renault Clio and Scenic in Europe. The "B" platform maximizes interior space with a long 102.4-inch wheelbase, pushing the wheels to the corners for short front and rear overhangs. And a cabin that's 6-feet long, and in the hatchback that we drove, boasts an impressive 94.4 cubic-feet of interior room.

The cabin is also very well equipped, with standard air-conditioning, CD audio and power mirrors. Safety features abound with front side impact airbags, front and rear head curtain airbags, and tire pressure monitoring.

The Versa boasts wide, well-padded, pedestal-high bucket seats with nice looking cloth upholstery. We found them to be more comfortable than either Yaris or Fit. Adjustments are basic but include seat height with the upgraded SL trim.

But a tilt steering wheel is standard. There are handsome chrome rimmed gauges. Clean, logical switchgear for both climate controls and a standard CD stereo with an auxiliary input for portable MP3 players. Something you pay extra for on most rivals. Available options include audio controls on the steering wheel, satellite radio, blue tooth and a smart key; plus a Rockford Fosgate powered subwoofer.

But the most welcome feature in the Versa is the big rear seat which has real adult leg and head room, and is wide enough for three commuters. The 60/40 split seat doesn't fold upright, or into a lounge chair, like the Honda Fit, but it does fold flat quickly. The 5-door's maximum cargo space is an impressive 50 cubic feet. Even with all seats occupied, cargo space is still healthy, with 17.8 cubic-feet in the hatchback, and a 13.8 cubic-foot trunk in the sedan.

The Versa's motivation comes from a new all-aluminum 1.8-liter dual-cam 4-cylinder, with a generous for its class 122 horsepower and 127 pound-feet of torque. Expect a 0-60 scoot of 9.5 seconds which is about normal for its class. But transmissions are not. A 6-speed manual is standard. Optional is a conventionally geared 4-speed, or Xtronic continuously variable unit.

All drivetrain combinations deliver high levels of fuel economy, with the best being the CVT's EPA rating of 30 city and 36 highway. On the road, the 1.8-four has acceptable reserve power, with the expected high rpm vibration.

Handling is capable thanks to a well tuned front strut, rear torsion beam suspension, and wide footprint 15-inch tires. But it's a mild, safe kind of capable, with moderate levels of front plow and plenty of wheel travel to soak up urban potholes.

Versa delivers a softer ride than the Honda Fit, and it isn't quite as nimble. On the other hand, in the Versa you feel like you are driving a larger, more substantial car. Brakes impressed us that way too. Front discs and rear drums, with optional ABS, Brake Assist and Electronic Brake Force Distribution.

But even with high gas prices, buyers expect small cars to have low prices. And the Versa meets that challenge. Both sedan and hatchback carry a sticker of $12,555 for the base S-grade model. For $14,555 the Versa SL adds cruise control, power windows and locks, plus a 6-disc CD changer.

The 2007 Nissan Versa lives up to both its name and its class, offering more than expected with a roomy, flexible, and polished interior, fine road manners, high-value pricing, and of course, true fuel economy. It is an extremely able subcompact. Giving thrifty-minded car buyers yet another stylish way to keep $3-a-gallon gas from becoming the road to the poorhouse.