Articles by Paul Gover

The bottom line is the icing on a car cake that is tastier than anything from Japan since the original Mazda MX-5 in 1989, and a rare reflection of the strength of the Australian dollar. Instead of banking big profits on a car that has already created a huge waiting list in Australia, Toyota has passed on the dollar value in a car that was widely predicted to have a starting sticker of around $35,000. Nothing has been cut from the package to achieve the sub-$30,000 bottom line for the 86 GT manual, and even the upscale GTS - which picks up a bunch of stuff including bigger wheel and brakes, better aircon and satnav - is still cheaper than expected from $35,490. "Sometimes in this job you get lucky," says Toyota's marketing boss, Matt Callachor, announcing the price today in Canberra. He says pricing negotiations with Japan ran right to the local deadline and the successful outcome was even kept from Toyota's dealers until the official announcement at 10am. The good news puts pressure on every company in the sports car class, but particularly Hyundai with its impressive new Veloster coupe and Subaru, which begins sales of its BRZ - a near-identical shared product - in July. The 86 project leader, Tetsuya Tada, is happy about the Australian pricing, but still focussed on his work to create a car that was tasted from the top of Toyota - by new company boss Akio Toyoda, grandson of the founder - to go all-out to put driving enjoyment back into the T brand. "This car is not about numbers. It's a car that really gets your engine pumping. It was built by passion, not by committee," says Tada.  

It's going to take something very special to stop the Toyota 86 winning the 2012 Carsguide Car of the Year award.The new coupe is the most dramatic Toyota newcomer in many generations and ticks all the right boxes from its styling to driving enjoyment and the crucial starting price. The bottom line is finally revealed in Canberra this morning, with the 86GT opening the action at $29,990 and the heavily-loaded GTS taking the bottom line up to $35,490 with an automatic gearbox.After pushing it over familiar fun roads around the national capital on Sunday afternoon, I can finally confirm the promise that was obvious during a very restricted preview drive at Fuji Speedway in Japan last year. The 86 is the most enjoyable drive you will find without jumping into a Porsche, combining brilliant grip and balance with a sublime ride and steering that keeps you totally in touch with the road. It can feel a little underpowered, and the dub-dub-dub exhaust note on start-up is a constant reminder that Subaru was a 50:50 partner in the car, but there is a huge amount to like in the 86 and very little to complain about. Toyota already knows the car is going to be a huge hit in Australia and the foundation for a range of hot-up work, so shows it in Canberra with a variety of tweaks including a giant TRD rear wing and bigger wheels. But, in keeping with the policy of 86 project leader Tetsuya Tada, the engines are all untouched as hot-up work is being left to tuning companies.VALUEThe 86 arrives in Australia with more promises than a politician on polling day, and it all hinges on the bottom line. Toyota Australia has delivered by providing value without going crazy. There are two levels of equipment in the 86 - GT and GTS - and the obvious mechanical differences are bigger ventilated brakes and wheels not the GTS, as well as satnav, split auto zircon and better seat trim in the cabin, with a strip of LED daytime running lights to tell the world - and GT buyers - that you have the hero car.The predictable package runs from seven airbags to alloy wheels, aircon and power steering, a leather-wrapped steering wheel and six-speed manual and automatic gearboxes. The pricing is just the icing for the 86 fans who have created an over-full waiting list in Australia that's likely to mean a delay of at least six months for slow starters in showrooms.“The 86 is meant to be enjoyed by as many driving enthusiasts as possible, and our pricing will extend its appeal to people who never imagined they could afford such a fun car,” says Toyota Australia's chief of sales and marketing, Matt Callachor. The next big question is how Subaru will price its version of the car, the BRZ coupe, when it arrives in July.TECHNOLOGYEverything about the 86 is focussed on the driver, and was driven right from the top of Toyota by the grandson of the company founder. Akio Toyoda is a part-time racecar driver and was in direct touch with project leader Tada throughout the car's development, including Toyota's surprising partnership with Subaru to provide the engine, drivetrain and basic suspension.The flat-four engine helps keep the biggest weights set low and back in the body, resulting in a near-ideal 53:47 balance and the chance to tune the car from the driving seat for maximum grip and enjoyment. The engine itself is a new-design 2.0-litre that, thanks to direct fuel injection that Toyota was originally reluctant to share with Subaru, makes 147 kiloWatts and 205 Newton-metres.After the six-speed gearboxes there is a limited-slip differential in the tail, although not on the lower-grade automatic GT. There is nothing special about the rest of the deal - no look-ahead radar or automatic braking or even a sunroof - to ensure the 86 as the most focussed sports car to hit Carsguide since the original Mazda MX-5 in 1989.DESIGNThe Toyota coupe is not as adventurous as the Hyundai Veloster, or as edgy as the Subaru BRZ, but it looks good. It is slightly cute with the basic bones for plenty of pump-up action, including the exaggerated guard flares that are Tada's favourite design element.The cabin is strictly 2+2 as you'd expect but the boot is reasonably sized for a cavity that holds a full-sized alloy spare. Inside, the look is focussed on the driver and that means clear dials, a slick six-speed manual shift, and no frills. Some of the plastic parts look slightly cheap but that's what you get when the emphasis is on the basics and the bottom line.SAFETYToyota promises five-star ANCAP for the 86 and backs it with seven airbags including protection for the driver's knees, solid work on the front end to protect pedestrians, and big brakes with ABS and ESP stability control. But its trump card is the dynamic ability which means an 86 driver has far more ability to avoid a potential threat than someone in, say, a Camry.DRIVINGPushing hard down a familiar mountain road on the outskirts of Canberra, I'm having huge fun in the 86er. The car feels like an extension of me, not a tool that requires hard work and compromises. The car has just enough power for the job, the brakes are great, and the 86 turns and goes exactly when I want and how I want.The engine is not particularly eager to rev to the redline at 7450, but is still tight with less than 100 kilometres under its wheels, and the tightly-stacked ratios allow it to be pushed along with frequent upshifts to keep it in the sweet spot around 4500 revs. It is the best driving car from Japan since the first MX-5 and rivals Porsche for fun, without the giant pricetags.The steering and chassis balance are the highlights, and what makes the car so enjoyable. We got an early taste with some low-speed drifting in Japan last year but, on real roads with real challenges, the 86 clearly has the right stuff for Australia. But it's not perfect. Even for the price.The cabin plastics are sub-standard for Toyota, and there is that constant reminder - the cranking sound on start-up and the dub-dub-dub exhaust note - that this is not a total Toyota. The heart comes from Subaru with its boxer four, even if the 'heart' and passion that drove the project is Toyota.VERDICTA winner. Simple as that.

Something is missing from the new M5. All the numbers alongside BMW's newest go-faster hero car add up to something special, from the torque and power figures to a genuine 305km/h top speed.But when you drive the car those numbers don't add up to a special car in the same way as the previous V10-powered M5 rortmobile. This one doesn't tug you on the sleeve and suggest you should head out - right now - for some naughtiness. Instead, what the M5 of 2011 has become is an adult grand tourer with the sort of serious slugging power that keeps it near the top of the heavyweight class of sports sedans.It can be soft and almost gentle for highway cruising, something you could never have said about the previous M5 with its Formula One-inspired engine and an almost M3- style approach to sporty driving. But open the taps in the new twin-turbo V8 at almost any speed and this M5 is capable of pinning you in the seat and opening your eyes. It's a new benchmark for the big daddy in the M-car family and, because it also hangs onto the basics that make the everyday 5 Series the current benchmark in its class, it's a serious contender at every level.The new one came in at $230,000 – well below the outgoing M5’s price of $241,000. However, the new M5 gets substantially more equipment and that means a major value boost that's becoming typical for the brand as BMW fights hard to retain its current owners and win converts in Australia.The car is fully equipped in the way you expect of an M5, from a soft leather interior with sports seats to a full suite of entertainment choices, impressive split-system aircon, a head-up display for the driver - but don't bother with your polarized sunglasses - and M badges and fixtures including the steering wheel and even the driver's footrest.It looks as if BMW plans to undercut its biggest rival, the Mercedes-Benz E63 AMG at $240,985, as well as making things much tougher for anything from Audi with an RS badge, and even the Jaguar XFR at $207,905 and upcoming XF-RS.The Efficient Dynamics drive at BMW has even caught up to the M5. It's  designed to go light on fuel, with economy as much as one-third better than the old car, but that's only when you're taking it easy on the GT. If you want to boogie, the technology in the M5 starts with the multi- mode twin-turbo 4.4-litre V8. Cynics will say it's just the same force- fed lump designed for the un-M SUV twins, the X6 and X5 Ms, but it's had a lot more work for M5 work on everything from the cylinder heads and inlet system.So the car makes 412 kiloWatts with 680 Newton-metres, with claimed economy of 9.9 litres/100km and CO2 emissions of 232 grams/kilometre. The biggest change from the SUV tuning is an extra 1000 revs at the top end, although that's still more than 1000 short of the old V10... For the record, the new M5 will thump to 100km/h in 4.4 seconds and has a Nurburgring time below eight minutes, undercutting the 8:05 of the old model.The new M5 has the expected multi-mode settings for engine/ transmission, steering and suspension, as well as significantly upgraded brakes - although there is nothing special on the rear, because of the electronic park brake fitted to the ordinary Fives - and ESP settings. The gearbox is now a seven-speed twin-clutch automated manual that removes, M says, any need for a manual while making full-auto life much easier than before.The M5 is not intended to be a 'look-at-me' car and there are plenty of stories from Europe of people buying a car without the badges, and downgrading the alloys, to blend into traffic like a basic 520d.Although the rocket-launcher exhaust pipes give things away these days. The car is relatively subtle despite pump-up work on the guards, those hefty alloys, a more-aggressive nose to keep the V8 happy and primed with air, and the tiny lip spoiler on the bootlid. Inside, the look and feel is more luxury than loonatic, as BMW believes M5 buyers are considerably older and softer than the hard cases who go all the way with an M3 GTS for track time.A five-star ANCAP rating is a gimme for the M5. The basic Five has already cleared the bar and there is nothing to suggest anything different for the M-car, despite the gaping cooling holes in the nose that don't look particularly pedestrian friendly. Its line-up of active safety systems - from the brakes to the electronic stability and steering and brake packages - also means it's much more likely to help you avoid a crash than other Fives, or lesser cars. Not that it's an easy car to tame.The new M5 is a great drive. It makes life easy and enjoyable on boring freeway stretches yet you always know there is a sledgehammer hidden beneath the luxury stuff. When I crack on through the first twisty bits it responds with everything I expect from a new M car. Almost.The performance is epic, particularly through the middle range when the turbos are forcing the pace, when the V8 fires the car from corner to corner. The gearbox is great, too, with almost-seamless changes and the ability to downshift late for tightening curves or unexpected traffic. The turbos also provide some WRX-style exhaust thumps and pops that remind you of the M connection. But…There is a noticeable turbo delay when you first crack the throttle, especially during low-speed overtaking, and the huge torque easily overpowers the giant rear tyres and has the traction control working overtime. On the race track the M5 cranks out its laps and allows some tail sliding silliness.The basic chassis setting gives slight front-end push, as I found on public roads, but the power and weight - more than 1800 kilograms - means its always up for a slide, even with the M. The V8 engine is a thumper. The M5 has abilities beyond most drivers yet I find - despite an annoying pace car - that it's not as sharp as I expect.It's more like a Nissan GT-R, whose computers overrule the driver, than an M3 or even an E63. And that's the bottom line. The new M5 is not intended as a track car, but as a hugely fast GT for adults who like their performance without any rawness or unpleasantries.BMW M has done a top job as always and so the new M5 is a relaxed and relaxing tourer that can easily cover vast distances, and make fewer fuel stops than in the past along the way, but also get up and go, go, go and go. It's a car to cherish and enjoy, and one that's going to make a lot of grown-ups very, very happy.A brilliant new M5, just missing the final edge of greatness.

Things changed when the Renault Latitude landed in Australia last year.For the first time, the French maker had a car that didn't sit alongside 'quirky' in every sentence, or hang its future on a hatchback tail borrowed from J-Lo. The Latitude looks and drives like a run-of-the-mill mid-sized family sedan, not something oddball from France, and Renault Australia also managed to end its earlier battles against high-priced hopefuls with a bottom line from $36,990. The Carsguide crew has spent more than 2000 kilometres with a Latitude to compile a local report card, with solid Bs in most areas but a "Must do better" bottom line because of the classy competition in faces in Australia.VALUEThe basic Latitude has everything you need for family motoring, and a few surprising bonuses. The leather seats and side blinds are great for child-friendly motoring and a satnav system with built-in speed zone alerts, thanks to TomTom programming, works for everyone. The pricing plan works because the Latitude, despite its Renault badge, is a global hybrid. It picks up a mechanical package from Nissan and is built by Samsung in Korea.But, to put it into perspective, the Latitude has the same bottom line as the classy and well equipped Kia Optima Platinum and costs more than a basic Honda Accord Euro. In a mid-sized class that's loaded with contenders, and class, the Latitude is still struggling to win friends and only 208 cars were delivered through the first 11 months of 2011, compared with 17,637 for the Toyota Camry.TECHNOLOGYThere is nothing special about the Latitude, although the long-termer comes with the solid diesel engine and six-speed automatic that gives it great economy and long legs for touring. The chassis picks up Maxima bits and that shows with good handling and ride comfort that's good, but not as great as we remember from cars such as the Laguna.DESIGNThe Latitude is very conservative by Renault standards, and doesn't really sit all that way in a family of cars that is dominated by chic little Megane models. But there is nothing wrong with the shape or space, or the boot, or the dashboard layout and controls.SAFETYRenault was one of the world's first carmakers to commit to five-star ANCAP safety and, without including a big crash in the test program, there is nothing to fault. The car sits well on the road, the brakes are strong, and you know it has an ESP safety net for bad weather or some sort of silliness by someone else.DRIVINGLiving with the Latitude is easy, and enjoyable. It's no sports car, but it gets along nicely, works well for a family, and will puddle to the mall or handle a long country run. The diesel engine has plenty of shove, even with bicycles on the back end and fun stuff filling the boot, and is averaging around 8.2 litres/ 100km despite spending most of its time in the city and 'burbs. The car is quiet, the aircon works well, and the headlamps are good, but the seats are a major disappointment. They lack support and cushioning, which means the Latitude starts down the list for any trip over two hours. The biggest shortcoming in the Latitude is nothing to do with the car, but its position and its opposition. It just doesn't have enough zing or attitude - whether that's the bland styling or the lack of 'Renaultness' - in a class where there is lots of class. Our current favourites include the Ford Mondeo, the new Camry and - for value - the Skoda Octavia. So the Renault is doing the job, and still has some time left to impress, but it's not the first choice for a mid-sized winner.VERDICTThe Latitude is good, but not great. In a class with standouts like the Ford Mondeo, and even the new Toyota Camry, it's going to be a slow burn - at best - in Australia.

The Patrol has been on sale in other countries for just over two years, and is now even being sold in the USA for the first time since it debuted in Japan in 1961.But it is still only being built with left-hand drive, as Middle East customers take priority. Now the new head of Nissan Australia, Bill Peffer, has set a firm timetable for the Patrol as one of the key models in a product push intended to take Nissan past Hyundai and even Mazda to become Australia's favourite all-import car company."It is coming. March 2013," Peffer confirms to Carsguide. "The new one is a very impressive product. We will corner the market with it." He also reveals there will be a two-Patrol strategy in future, with the cushier new model starring and the more working-class existing model continuing in showrooms."There are two different customers. For the foreseeable future we'll keep it (the old Patrol) in the lineup. We can keep it as long we want." But the new-model push is about to begin with the arrival of the battery-powered Leaf, compact Almera, reborn Pular and, next year, the mid-sized Altima that also becomes Nissan's headliner in V8 Supercar racing."We're on the cusp of a product renaissance. We've got a busy year ahead of us," Peffer says. "We start with Almera, then Leaf, right about the same time. Pulsar is the big news from a volume standpoint, then Patrol at the very end. "This year we're up 10 per cent. The new products are the sea change."He says the plan is to get a full range of new models, then drive home Nissan's advantages. "We are a performance car company but we're also an innovation company. He also admits Nissan has battled in recent years, despite gains on the sales charts. "If you don't have a complete lineup in the right segments, you're working at one level and that's price."So he says that ultimately there is just one target, and that's to get ahead of Mazda in Australia. "Globally, Nissan is free times bigger than Mazda. We are on a growth track. We're moving in the right direction. "Where have a lot of opportunity is in the passenger cars. We'll refresh the whole line. If we're going to grow it has to be in the passenger cars.Despite the volume targets, Peffer says Nissan needs to do more in Australia. "In all of our new product offerings, we need to move to building the brand. We've been very successful with that in the 'states. "One of the things I look at is the brand opinion, and that's been fairly flat for the past five or six years." 

But it could be a long time before Australian-made cars rise to the ISOFIX global standard for in-car protection.Only the Holden Cruze is currently compatible with ISOFIX and there are no concrete plans to fit the necessary mounts to the Ford Falcon and Territory, Holden Commodore or Toyota Camry and Aurion. Also, the ISOFIX system is not universal and is not fitted to most older vehicles.Legislation is being finalised at Standards Australia to approve ISOFIX child seats next year, allowing them to be sold in Australia and fitted to the vast range of imported vehicles that already have the necessary mounting points in the back seat.All three local makers are supporters of the ISOFIX move, which comes more than 15 years after Europe and a decade after the USA. The primary advantage of the system is that it makes correct fitting of child seats far easier than strapping them into a vehicle with an adult seat belt, even with the use of the top tether mandated in Australia."Holden is very supportive of this technology and is pleased that the legislation will be changed in the near future to support ISOFIX in Australia," says says Stephen Curtis,  engineering manager in charge of vehicle structure and safety integration at Holden."Currently, the majority of Holden's portfolio is ISOFIX compatible, with the exception of Commodore, Barina Spark and Captiva. Holden's engineering team is working hard to ensure these three carlines are ISOFIX compatible as we introduce model updates to these vehicles. "The locally-built Series II Cruze is currently ISOFIX compatible and the engineering team is working to ensure that Commodore will have ISOFIX features as soon as possible." Ford is also a strong supporter and also has the mounts in a wide range of its vehicles. "Our European-sourced vehicles are all ISOFIX ready and we are investigating its application across the other vehicles in our range," says Neil McDonald of Ford Australia. "We are looking into its application for our Australian-made vehicles, including the component and other testing required to ensure suitability with other vehicle components." The company is a global booster for the scheme, but has no detail yet on Falcon or Territory. "Ford is supportive of the introduction of ISOFIX as we believe it will drive harmonisation of standards across the industry while also delivering a good safety outcome for owners. Ford welcomes the clarity provided over ISOFIX but also hopes there will be harmonisation of standards between the current ADR and ISOFIX," says McDonald. Toyota is also talking positively about ISOFIX. "Toyota has welcomed the recent revision of Australian Design Rule 34 . . . which now more closely aligns with international standards by including allowance for ISOFIX child restraint anchorages," Toyota says.PROSThe advantage of the ISOFIX system is that it makes it much easier to fit a baby capsule, child seat or booster. They are clipped directly to a pair of attachment mounts which are part of the vehicle's basic structure. There are usually two pairs of ISOFIX mounts, located at the base of the rear seat in the two outboard positions.The system makes it easier to fit a child seat correctly than using an adult safety belt, even with the top tether that is mandatory in Australia, because it can only be fitted one way. Some European studies show the percentage of seats fitted correctly with ISOFIX is more than five times higher than with a seat belt. Also, seats can be heavier with solid metal bases - ideal for baby capsules - instead of usually being formed only from plastic or a similar material. 

I-Spy, which challenges everyone in the car - both parents and youngsters - to pick out objects with names that start with a particular letter of the alphabet has been brought back by Michelin. Since December 2009 a series of 27 I-Spy booklets has been printed and another 13 titles are about to bring the total to 50. They all kick off the with opening line: "I spy with my little eye". The pocket-sized I-Spy books contain up to 200 themed colour pictures, which observers have to spot during a single trip. The aim is to tick them off and collect points, winning an in-car game. In Britain, children who notch up 1000 points are eligible to join the I-Spy club.As yet, the books are not available here but Michelin Australia is showing interest.  "From an Australian point of view, we've got no immediate plans. But they are something that does look interesting," says Jane Rowe of Michelin."It goes look interesting. We're going to look at the feasibility of bringing the books into Australia."  The books have become quite sophisticated and some of the new favourites are 'I-Spy the Night Sky' and 'I-Spy Minerals, Rocks and Fossils'. The emphasis is obviously on Europe, with 'I-Spy Paris' and 'I-Spy Kings and Queens' both rating well. The two newest titles, both aimed at the UK, are the 'I-Spy Book of Facts', which will be useful to quiz lovers, and 'I-Spy Football Grounds', which focusses on 115 soccer grounds in England and Scotland. The other new titles are: Castles and Battles, Cambridge, People and Places, Mini World Atlas, Isle of Wight, High Weald and Great Britain.The best way to track down the latest I-Spy books is through Amazon.com.  

It marks the Malaysian battlers' brand finally shifting gears here in Australia. The Preve the first Proton car developed for global sales, and not just an inwards-looking Malaysia market, and has new management at home to back the drive and end the perception that the company is just part of the country's public service. The Preve - pronounced 'pre-vay' - will be in showrooms in September with a starting price that should be around $18,000. Proton Cars Australia says the Preve will be a rival to the Kia Cerato and Hyundai i30 and will hit following the baby Evora people mover, taking over from underwhelming efforts including the S16 and - despite strong sales - the baby Jumbuck ute. It still only comes with a 1.6-litre starter engine, although there is also a turbocharged version of the small four. But Proton denies any desperation in the latest move. "No, it's not our last chance," Proton boss John Startari reveals to Carsguide. "This is the start of a new product range and a new position for the company. There's never been a time when the company has been able to compete on an even footing in Australia in terms of specification, features and safety." Proton has not had any four or five-star safety cars in Australia, based on ANCAP testing, and it has also sold cars with engines too small for local conditions and drivers. But Startari says that is changing and the company's new management, under the DRB-Hicom automotive conglomerate, is providing extra drive. "Proton has been very vocal in saying that Preve is the first global product. That can only benefit countries like Australia," he says. At present, Proton is only a blip on the Australian sales charts and has delivered only 379 cars to the end of April, a 23.7 per cent slide from 2011. Even though the Jumbuck is officially gone from its brochures, it is still the best seller with 111 deliveries. Startari refuses to be downbeat with new products on the way, although he admits his job is not easy. "Obviously, every car manufacturer in the country has plans for their future and there are extra cars to back this up at Proton.  "We've got Exora coming, which is a new segment for us and will fill a void from Jumbuck. Jumbuck had a niche of its own and it's the same for Evora, because non-one else has a small people mover. "Then we're looking at a hatch version of the Preve in 2013, as well as vehicles in other segments. But I cannot talk about that yet."  

Local car manufacturers will absorb the extra cost. The new tax only applies to the three Australian manufacturers - Ford, Holden and Toyota - but they say they intend to absorb the extra because they must stay price competitive with import brands.The Carbon Tax could add as much as $30 million to the costs of local carmakers and component companies, according to figures compiled by the Federal Chamber of Automotive Industries.This means something between $200 and $400 for the price of a locally-made Falcon, Territory, Commodore, Cruze or Camry. None of the brands is prepared to go into detail, but each is adamant that rising prices is out of the question in 2012."Competition is fierce, so the ability for local manufacturers to pass on an additional cost is obviously limited," says Emily Perry of Holden. "This is a competitive disadvantage for local makers."Holden will not speculate about the exact impact of the Carbon Tax, but intends to stay profitable after last week announcing an $89.7 million profit for its operations in 2011. Toyota is not making an ironclad promise on prices but admits it is extremely unlikely."We envisage that the cost of the carbon tax borne by Toyota Australia will not be passed on to customers," says spokesman Mike Breen. "Given the competitive and price-sensitive nature of the Australian market, we would find it very difficult to pass these costs on, especially when most vehicles imported to Australia come from countries that do not impose a carbon tax."But Ford is emphatic. "There won't be a price increase that is directly attributable to the carbon tax. Critically in the light and small car segments, prices are driven by competitive forces, not one single event or tax," says Neil McDonald of Ford. The situation is similar to the introduction of the Goods and Services Tax, which was preceded by speculation about major price increases across the motoring landscape. But most of the impact from the GST was absorbed by car companies and there was little change to showroom stickers and that situation has stayed the same until today, when prices are at a historic low - in terms of value - thanks to the strength of the Australian dollar and competition between the 50-plus car brands now selling down under.The Carbon Tax also worries the major importers, led by Mazda, but they also forecast a no-change situation in showrooms. "We will not have a clear picture of what, if any, cost pressures the carbon tax may put on our business until it is implemented," says Steve MacIver of Mazda."However, in general, any time our business is put under cost pressure such as exchange-rate movements, competitor actions or the like, we balance our costs against our competitive position in the market. Ultimately it's our buyers who determine the price we can charge for our products." 

The car fairies come to visit me this week as I sleep in Stuttgart, not far from the birthplace of the automobile more than 125 years ago. While I am catching some shut-eye, they wave fairy dust over the Smart ForTwo I have parked in the hotel garage. Or so it seems.As I jump back into the tiny Smart, preparing to battle the commuter traffic on a run to Daimler central just outside of town, I glance down at the fuel gauge and I'm stunned for a just second to see it is magically back on the full mark.I don't recall a petrol station. But then I do remember this is not just an ordinary Smart, and I had better disconnect its electrical umbilical cord before selecting Drive.VALUEThis car is a Smart ForTwo Electric Drive and it's part of an evaluation fleet of more than 1000 cars racking up kilometres and experience across Europe. The first of the fleet hit the road in London in 2007 and have been followed by cars in a range of big cities as far apart as The Netherlands and home base in Germany.The plug-in Smart is now in its second generation - with a third to come later this year - and Daimler says production has topped 2000 cars for destinations in 18 countries. The first real-world electric car from the Daimler family is promised for Australia, but the final details - on-sale date and the crucial price - are still unknown."It's under evaluation. We're looking to bring a small number in initially, to trial them in our driving conditions," says David McCarthy, speaking for Mercedes-Benz."The big stumbling point is the price at this point. It's probably going to be pretty close to $30,000. It will be at least a 50 per cent premium on the petrol car."But what is known is that, unless owners have a solar array on the roof, the vast majority of these Smarts will be running on coal-fired electricity and that's not so smart. Still, Benz is pushing ahead with a potential plan that would make it the third all-electric car in Australia, after the tiny and tinny Mitsubishi iMiEV and the impressive Nissan Leaf."Hopefully in the next month or so we'll have a decision. We've got a bit of interest but we deliberately haven't talked about it until we've driven the car in local conditions," says McCarthy.TECHNOLOGYThe ForTwo is an ideal subject for electrification. In fact, when the tiny city car was born in the 1980s - as the Swatchmobile, an idea from Swatch boss Nicolas Hayek - it was originally intended to be a plug-in battery car.Things changed and by the time it hit the road in 1998 it had gone petrol, and today's ForTwo is still motivated by a 1.0-litre three-cylinder engine in the tail that produces 52 kiloWatts with claimed economy of 4.7 litres/100km.The switch to the latest ED package puts a lithium-ion power pack, sourced from Tesla, into the car together with an electric motor good for 20kW in constant running, and 30 at peak. The maximum speed is 100km/h, acceleration takes 6.5 seconds to 60km/h and the range is a claimed 100 kilometres.But when ED3 arrives this year, a new battery and other changes will mean 35kW - and a petrol-rivalling 50 at pen - a top speed of 120km/h, 0-60km/h in five seconds and a range better than 135 kilometres.DESIGNThe design of the SmartTwo is much as it's always been - short, stumpy and very different. That difference has not worked well in Australia, where parking is not as precious as it is in Paris or London or Rome. But some people like the idea of a two-seater city runabout and the Smart delivers with a look that is unique.The Smart ED - for Electric Drive - has alloy wheels and is nicely fitted out in the cabin, with two dash-top gauges - they stick up like crab's eyes - to measure battery life and current power use. The plug-in cable is nicely integrated into the bottom half of the rear hatch, which splits with a glass upper for easy access, and the plug-in point is tucked into what would normally be the filler for the fuel tank.SAFETYThe latest Smart is a four-star car in Europe, but that's not the ED. So it's hard to know exactly how it will go, despite Daimler promises that it will be as good as the regular car.It comes with ESP and ABS, as you'd expect, and safety has always been a priority - with massive changes to everything from the suspension to the weight balance even before the first car was sold. But it's still a tiny car and you wouldn't want to be on the receiving end if someone in a Toyota LandCruiser made a mistake.DRIVINGI have driven a bunch of electric cars and the Smart ED is one of the nicest, and most relevant as a green city runner. It's never going to rival a Falcon at the lights, or have the carrying power of a Commodore, but it answers the needs of a lot of people who are now even looking at scooters for inner-city chores and trips.The Smart feels way, way more solid than the iMiEV, while the price will easily undercut the Leaf. But, there are a bunch of buts.Any Smart car makes a lot of sense in Europe, where roads are crowed and parking is tight, and the electric car is even smarter because it is zero emission when running. But even the worse of Sydney and Melbourne traffic is no match for Paris at peak time.The Smart ED is also slow. Very slow. It gets away ok, and is fine up to about 50km/h, but then it battles to add pace and tops out at a GPS-measured 101km/h.I have not driven a car so tardy as my original 1959 Volkswagen Beetle, which means you have to be thinking all the time about maintaining momentum and keeping out of the way of quicker traffic. The Smart is alright on a highway, but hills are a challenge and you really need to keep an eye on the mirrors.Stil, it's a fun car. And a very green car. It's also feels more substantial than I remember from earlier ForTwo runs, rides well and has good brakes and handling for the size and pace of the car.The electric systems are totally inconspicuous and cause almost zero fuss - although the plug-in cable could get dirty if you don't have an enclosed garage or charging spot. My German car comes without onboard satnav, which should be standard to help with locating charge points.And that's the only remaining question. It's extremely easy to plug the Smart ED into a regular socket, and an overnight charge is no drama, but there are still doubts about range.The car easily lasts for 80 kilometres in Germany despite lots of full-throttle work, with the dial still showing half a charge on the 16 kiloWatt-hour battery, and the fairy visit means it's ready for more than another 80 the following morning. It's tough to know until I get a Smart ED home, but it's a car I like and - even at $32,000 - it could be a good thing for Australia.VERDICTA great way to get around in Europe with potential for solid support down under.At a glanceScore: 7/10Smart Electric DrivePrice: estimated $32-35,000Engine: AC permanent magnet synchronous electricTransmission: single speed, RWDBody: two-door coupeBody: 2.69m (L); 1.55m (w); 1.45 (h)Weight: 975kg