The new Toyota iQ is officially known as a micro-subcompact. It is aimed toward urban buyers who don’t need anything more than a couple of seats and a speck of cargo space. It has been puttering around Europe and Japan for a couple of years under the Toyota nameplate.

Driving the Toyota iQ isn’t any different from driving a larger car. It is nimble and comfortable, and the ride and handling are most closely akin to having a sporty feel. The steering wheel contributes to this disposition because it is wrapped in leather and incorporates a flat bottom.

The Toyota iQ is front-wheel drive; the powerplant is up front, however it is mounted behind the differential. This is an arrangement in contrast to every other existing Scion/Toyota model. This assists in opening up more space for rear seating (not available in the smart), despite the fact that they are as functional as a third row in a small SUV. This isn’t necessarily a condemnation since the backseats in the Fiats and Ford Fiestas are not much more practical.

The car measures in at a miniscule 10 feet in length. At first thought, this may not seem micro sized unless you take into consideration that the Toyota Camry is nearly 6 feet longer. The smart fortwo is the only other high-profile car in this class to sell in the U.S., and is around a foot shorter.

Nevertheless, the Toyota iQ succeeds in virtually every manner the Smart fortwo fails. Driving the Toyota iQ Scion on the highway at full speed discloses none of the inherent drama or sensation that you’re strapped to a cannonball that plagues the smart. As an effective city car, the Scion iQ is better than it needs to be. It is secure on most roads, quiet when cruising at 70 mph and more comfortable for two adults. It is a significantly more satisfying car than its most apparent competitor, the smart fortwo.

The car is stable and well rooted, and only when you step solidly on the brakes at high speed (they are disc brakes in the front, drum brakes in the rear) does the vehicle become a bit unsettled.

Toyota iQ Scion’s microcar will come standard with electric-assist power steering. This is something that costs extra on the smart fortwo.

There appears to be a battle brewing to win customers among micro-subcompacts like the Fiat 500, Ford Fiesta, as well as the smart fortwo, which costs the same as the iQ and also returns comparable miles per gallon.

The Toyota Scion iQ is a peek into the future, where we’ll all need to care far more about things like mpg and how much space there is for a two-car garage.

The difficulty for Scion is that America isn’t like Europe, where this car has been sold for years as the Toyota iQ, and lately as the Aston Martin Cygnet.

Toyota and many industry analysts are betting that the iQ can become a force in the US market.

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