leather-wrapped steering wheel with audio controls, and a Sirius satellite radio added to the Sport's BOSE audio system.

Additional standard features in the Fiat 500 Lounge include a security alarm, BLUE&ME Hands-free Bluetooth system. (Thankfully, the 500 was not equipped with the integrated navigation system of the Alfa Romeo MiTo I drove last fall in Italy.)

Inside, the 500 offers 14 color and material combinations, many inspired by the classic simplicity of the historic Cinquecento of the 1960s. Cloth seats, upholstered in a unique split-color effect, help dispel the economy-car effect. Optional premium leather seats are available in traditional black, a brown hide, or ultra-sporty red and deliver a sophisticated look.

The one aspect of the 2012 Fiat 500 I would criticize is the hard plastic door panels. While not looking out of place in a sub-$20,000 car, they do not match up to the rest of the cabin detailing. This is admittedly a minor quibble, but the rest of the interior is so stylish that I wish the designers had invested just a few more dollars to ensure that the door panels measured up to the rest of the cabin.

The chromed "hook" door handle shape, for example, pays homage to the original Cinquecento--while simultaneously integrating modern-day power door locks. A subtle touch, I thought.

With the price of gas on the rise, the 500's EPA numbers of 30 highway/38 city (for the manual) will be attractive. In my mixed-drive route, the 500 delivered 33 m.p.g.--which I found impressive, considering how much I had downshifted to maximize the 98 lb.-ft. of torque on tap, coming at a peak of 4,000 r.p.m.

Since my drive route skirted the U.S.-Mexican border, with Border Patrol cruisers everywhere, I made no attempt to confirm the 500's top speed. Based on the numbers provided, I would expect it to be between 100 and 105 m.p.h.

The 500 is entering an expanding market for small cars, but among entrenched competition. At the lower end of the price spectrum, it is book-ended by the Honda Fit and Toyota Yaris, both of which seem spartan in comparison. Matching the slightly larger Ford Fiesta on price, but with just two doors and a hatch, the Fiat 500 is not a direct comparison.

I see the Fiat 500 as a premium small car, competing most directly with BMW's MINI--undercutting its most direct competitor by several thousand dollars when comparably equipped.

When viewed in total, the 2012 Fiat 500 is a most welcome addition to the small car segment. It will appeal to a younger demographic and, I suspect, it will be tilted towards women. Fortunately, Fiat is not waiting long to introduce a ragtop version. The convertible version coming this summer will widen its appeal. I suspect that many men will wait about a year until the hot Abarth version arrives. If my drive of the European version in Italy is any indication, it will be well worth the wait.

Fiat, welcome back to America. For those of us who have happy memories of a 124 Spider from high school in the Seventies or Eighties, or maybe an X1/9, it has been too long.

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