Volkswagen Lupo
WHEN Chancellor Gordon Brown announced a new lower tax for small cars in his budget, there was a ripple of applause similar to that heard at Wimbledon when somebody plays a good shot.
From now on, he had said, anyone with a car under 1,000cc would pay pounds 55 less each year for a licence.
It was agreed this was an excellent idea and suggested that Chancellor Brown should from now on be referred to as Chancellor Green to mark his crusade to protect the planet from the horrid fumes of nasty big cars.
But then a small voice from the corner of the room found the confidence to speak.
"Excuse me," it squeaked. "But are there actually any cars under 1,000cc?"
Soon everyone was outraged. "This is a con," we chanted. "Have we all fallen for the motoring equivalent of the emperor's new clothes?"
In fact, there are lots of cars under 1,000cc and there always have been. How could you forget the fabulous Mini Metro or the refinement of Citroen's 2CV.
"Fabulous" and "refinement"?
Well OK, in the old days 1.0-litre cars were lucky to accelerate from 0-60mph within an hour and seemed to be built from bits of Meccano.
But today things have changed and there are a few which look and perform better than that.
Latest on the market is Volkswagen's impressive Lupo.
The company says this is the first small car to have big car build-quality - and I'd have to say I agree.
The range starts at pounds 7,885, which may be expensive for its size, but there are saloons costing three times that which could learn something from the attention to detail in the Volkswagen Lupo.
Inside, there are soft-feel, dimpled surfaces coupled with dashes of brushed aluminium and splashes of bodywork colour. It really is very smart. There is a nice set of dials, extras such as dual airbags fitted as standard and well-placed cubby holes and compartments all over the place.
There is also more space in the front than you might imagine in a car shorter than a Polo by nearly 1ft.
Clearly, this comes at the expense of those in the back and any luggage you might, somewhat optimistically, want to take with you.
The Volkswagen Lupo is another in VW's on-going "platform-sharing" system.
As the German car giant now owns Seat, Skoda and Audi among others, it shares the bits you can't see among its cars.
So the Volkswagen Lupo is basically a reborn Seat Arosa that has been given a facelift.
But it's a much, much better car than that on the road, benefiting from the quality seen in the new Golf range. At the moment, there are three Volkswagen Lupo engines: a 1.7 diesel and a 1.4 -litre, 16-valve unit that will remain the quickest until the arrival of the Sport and GTi models in the autumn.
As it is the only one to fit into the new smaller car tax band, I opted for the 1.0-litre which produces just 50bhp.
But, regardless of the power, the Volkswagen Lupo is a refreshingly different drive.
The visibility all-round is excellent. Steering, gears and brakes are all smooth, precise and light.
The engine is a little breathless uphill - you might as well forget overtaking anything other than a milk float - but it is otherwise an impressive unit taking the Volkswagen Lupo to a top speed of 94mph.
You only have to buy one gallon of fuel for every 48.7 miles, according to the official figures. If you drove very carefully you would probably get nearer to 60.
But the best is yet to come. A "three-litre" Volkswagen Lupo is now in production in Germany and could be available in the UK at the end of the year.
Now an engine this big in a car this light would normally mean it could accelerate faster than the Space Shuttle.
But the new "three-litre" Volkswagen Lupo is so-called because it can drive for 100 kilometres on just three litres of fuel. That works out at 94mpg.
Although the shape is the same, the body is quite different. Doors, bonnet and wings are made from aluminium or magnesium.
Engine components are made from lighter metals than standard while weight has also been saved inside the car with special seats, steering wheel and pedals.
But the real innovation lies under the bonnet. For example, the engine switches off whenever the car stops. It starts automatically when you press the accelerator.
How ironic, then, that this three-cylinder, 1.2-litre diesel unit won't qualify for the new pounds 100 car tax band - because the engine is 200cc too big. Still, with the money you would save in petrol, your environmental consideration with soon be repaid.
And that will eventually cost Chancellor Green so many millions he may have to introduce a tax on motoring journalists who praise great new cars like the Volkswagen Lupo in order to recoup his lost revenue.
Volkswagen Lupo 1.0-litre
How much: pounds 7,895 on the road.
How fast: 0-62mph in 17.9 seconds. Top speed 94mph.
How thirsty: 48.7mpg.
Engine: 999c, four-cylinder producing 50bhp.
Insurance: Group two.
Warranty: Three-year mechanical, 12-year body protection.
I like: The amount of refinement packed into such a small car.
I don't like: The space in the boot and the body roll on cornering.
Sunday Mercury (Birmingham, England) May 23, 1999 Cole, Bernard
Find largest automaker car models and best old auto maker ones in the world: