The other major difference between the two vehicles is that the iQ is equipped with a CVT transmission while the ForTwo is equipped with a herky-jerky automated manual transmission. While CVT transmissions come in for much-deserved criticism from the auto journalist community, the CVT makes sense for its intended market--city dwellers (many of whom probably can't shift for themselves). In the iQ, it selects the proper ratio seamlessly and is well-matched to the car's willing 94-horsepower, 1.3-liter, four-cylinder engine.

In urban environments, one is unlikely to be impacted by a zero-to-60 time in excess of 11 seconds. The steering is both light (naturally) and responsive with satisfactory road feel, important when you're dodging potholes that are almost as big as the iQ. Combined with its overall length of just 10 feet, the iQ's 25.8-foot turning circle gives drivers the opportunity to fit into parking spaces lengthwise in the best European tradition.

Inside, the iQ feels neither small nor cheap. The materials and fit and finish are class leading, with one exception: The high-gloss housing for the radio looks like an afterthought, seemingly glued to the top of the instrument panel. Contributing to the