Small cars are making a comeback. Not that they ever went away in the rest of the world but size-obsessed US and Canadian consumers are finally recognising the value of a vehicle where bulk is unimportant. The 2007 Nissan Versa is a splendid example of what we need as opposed to what we think we need.

Okay, I'm preaching and my ex-wife still reminds me that everyone is entitled to their own opinion. True, but I can't resist directing your attention to the Versa, which arrives at a lower price-point than the Nissan Sentra. The Versa is based on the Tilda, as sold in other markets.

Too bad they changed the name. Wouldn't you just love calling your car (with a southern accent) "mah Tilda?" Get it? Matilda? The Tilda was supposedly renamed for its versatile space (as if the average buyer would ever make the connection). Assembled in Nissan's Mexican facility, the Versa is equipped with a fuel-saving CVT transmission and a 1.8 liter 4-cyilnder engine rated at 120 hp and 125 ft/lbs torque. Combined city/highway EPA economy is 38 US miles per gallon.

I'm delighted to reveal that the first Matilda (sorry, Versa) sold in the US and Canada will be a hatchback, with a sedan to follow later. Bless you, Nissan, for having the courage to introduce the far more practical hatch first instead of hiding behind that miserable industry excuse which says "North Americans look upon hatchbacks as meaning cheap therefore we won't be bringing one here." The Versa hatch will be unveiled at the NAIAS show in Detroit in January.