Last month, we travelled to Stuttgart, where DaimlerChrysler took over a multi-story car park to launch the new smart fortwo to the press, but the Bologna Motor Show was the first chance for the public to see the new car. The appearance in an Italian city was significant, as the outgoing fortwo sold very well in Rome in particular.

A glance at the new smart fortwo will tell you that the basic idea for the diminutive city car has not changed, but smart promises us that the fortwo has been improved in every aspect.

It takes a few minutes with the car to appreciate the changes, but they are there, most notably in the restyled front end, designed to give the fortwo a slightly more masculine appearance.

Inside, the fortwo is all new. Some of the originality has been lost, but it has been replaced by an improvement in quality and a little more space. These items are all part of the package designed to appeal to the North American market, where the fortwo will be sold officially for the first time.

Drivers of the current fortwo will note that the much maligned gearstick appears unchanged, but we have been assured that the shift quality itself has been immeasurably improved. The engines too receive upgrades all round, with the 1-litre petrol engine available in 61, 71 or 84bhp guises, along with a diesel and forthcoming electric options.

DaimlerChrysler will now concentrate on the fortwo model in the smart range and unlike the outgoing car, aims for it to be profitable from the start. Buyers will start taking delivery in April.

Shane O' Donoghue - 13 Dec 2006