We’re nowadays told that `smaller is smarter’, which must make this new Daewoo pretty clever indeed  - because they don’t come much smaller than the Matiz.

The baby of the Daewoo clan measures just 3.49m from front bumper to back, stands 1.49m tall and is a trim 1.48m wide.

But don’t be deceived by the measurements: this cute Italian-designed commuter can easily accommodate four Oz-sized adults with enough space in the boot for some carry-packs and meat pies.

Matiz is a purpose-built city car that may be just a bit ahead of its time for the local market, where a lot of folk are still locked into the erroneous idea that it takes a big six, or even a bent-eight, to get from A to B.

Daewoo logic asks: Why use a big six when a little three can do the same job—and at about a quarter of the cost?

Little three? Absolutely. The single overhead cam motor has three cylinders that displace 796cc, or about as much as a medium-sized motorbike.

At $12,000, it’s one of the cheapest and best value-for-money packages on the road.

Despite the low cost, the car comes with all the mod cons: Five doors, dual airbags, air-conditioning, CD player, central locking, power front windows and split-fold seats.

Like other Daewoos, it also comes with the very attractive feature of three years of free servicing.

A recent survey by the NRMA found the difference between a Matiz and a Commodore over three years of average motoring to be a whopping $24,000.

The Matiz registers just 776kg on the scales and has aerodynamic lines, so it doesn’t need a big six or V8 grunt to get it going.

OK, it may not leave metres of rubber on the road during acceleration, but at around 17 seconds to reach 100kmh, it’s more than a match for the pace of city traffic.

The Tickford-developed motor musters just 37.5kW and air-conditioning naturally claims a noticeable portion. But if you need to make a quick getaway, a push of a dashboard button switches off the air and all 37.5kW are available for acceleration.

Once on the go, the Matiz cruises merrily at the State 110kmh limit, but feels more at home at around 140kmh.

In the city environment, the test car returned 6.0litres/100km—that’s 47mpg in imperial terms—and suggests somewhere around 4.7litres/100km (60mpg) would be normal on the open road.

Let’s not forget these cars are immensely popular in Europe and are geared to run with the pack on the fast-flowing autoroutes.

The influential European motoring press made quite a fuss of it, with the Matiz making the front cover of Italy’s Quattroroute and figuring among its "cars I liked most in 1999" feature.

Visibility from the driver’s seat is exceptional in all directions and the rack and pinion steering makes the little car a breeze to park.

The five-speed gearbox is light and positive and suspension is all-independent by MacPherson struts in front and trailing links and coils at the back.

The interior is stylish and accommodating, with supportive and generously padded front seats, good ventilation, grab handles and attractive instrumentation.

The blue circles around the dials glow at night and the big headlights give excellent reach and spread.

Safety standards are extensive and the Matiz complies with current Australian and future European regulations.

It’s a honey of a mini and one that far exceeds its aim to be a means of intelligent urban transport.

I’d be more than happy to tackle a trans-Australia run in a Matiz. Maybe a few hours behind the big sixes (and maybe not), but I’d be just as comfortable - and have a a heck of a lot more change in my pocket.