Big Business

It's a European institution as foreign to American culture as the siesta in Spain and Boxing Day in the U.K. Meet the minicar, which “super-size me” Americans would associate more closely with a go-kart than an adult car.

But the segment is huge in Europe and nearly everywhere else. Minicar sales totaled about 1.2 million units in Europe in 2004, General Motors Corp. reports during a test drive in Torgiano, Italy, of the all-new Chevrolet Matiz, GM's all-new European minicar.

So, despite the Matiz's diminutive size, its continuing success is a big part of Chevy's European growth plan. Some 1.4 million units have been sold since debuting in 1998. The Matiz is built in South Korea by GM Daewoo Auto & Technology Co.

It was sold for years under the Daewoo badge. But GM and partners purchased part of Daewoo Motor Co. Ltd. in 2002, and the Daewoo name is being phased out in favor of Chevy in Europe.

The third-generation Matiz should serve as an adequate introduction of the bow-tie brand to European buyers who are unfamiliar with Chevy's other offerings in the region, such as the Corvette.

With an overall length of just 11.5 ft. (3.5 m) — that's more than 2 ft. (0.6 m) shorter than the Chevy Aveo subcompact sold in the U.S. — and an entry-level 0.8L 3-cyl. or 1L 4-cyl. engine, the Matiz is perfect for urban and short-distance driving at low speeds.

The Matiz is capable of cruising the autostrada (Italy's autobahn) or twisting Alpine roads, but the experience is far from idyllic.

Top speed allegedly is 90 mph (145 km/h) with the 1L version. But the Matiz struggles to hit 70 mph (113 km/h). The clutch is soggy, although the gearbox itself is smooth. This is key: In the city, the small engines demand incessant rowing through gears.

The brakes are solid. But the teeny tires strain for grip, and tighter corners trigger understeer. No electronic stability control system is available — a technology offered by competitors Smart Forfour, VW Polo, Toyota Aygo, Citroen C1 and Peugeot 107.

Wind, road and engine noise are sufficiently hushed, but a rattle emerged from the rear of our vehicle during the first day of test-driving. We were told it was a loose license plate frame that would be fixed before setting out the next day. But the rattle returned.

The interior is cramped; two adult men in the front bucket seats found shoulders nearly touching. But two-thirds of Matiz drivers are women, Chevy says, so interior space might not be a primary issue. Otherwise, the cabin's design and features are sufficient, if Spartan.

The clean and gimmick-free sheetmetal features a rising shoulder line and a few interesting creases. The styling is more progressive than its predecessor but still cute, especially the rear. With its dopey-eyed taillamps, the rear view resembles Inky, Blinky or Clyde, the colorful monsters eaten by PacMan in the 1980s arcade game.

Chevy, meanwhile, hopes the new Matiz isn't gobbled up by its minicar competition.