Welcome to a car that dares to be just a little different. This is a Chrysler, a famous American brand, which is really an Italian Lancia. But it’s built in Poland.

Confused? It’s easy to lose track of some cars these days.

Essentially, Chrysler is an American brand but it has re-invented itself as part of the Fiat empire and it’s selling some pretty impressive cars. Ypsilon is the baby of the family. It’s sold in some countries as a Lancia but for reasons which aren’t clear or important, the bosses decided to badge it as a Chrysler rather than a Lancia. Chrysler, it seems, is held in higher regard than Lancia, despite the latter having some motoring royalty in its heritage such as the Integrale.

The result is a car which scores highly in a number of areas.

It offers a lot of car for the money and in a world where cars can be very similar, the Ypsilon is very different. During my week at the wheel impressed strangers asked about the car, which is unusual.

It’s also a spacious car for its size and it has a rather fetching interior, again different to its rank and file rivals.

But the stand-out feature in this car is the engine. It’s quite a bulky, well-fed design, but the engine is tiny: an 875cc unit which is more akin to a lawn mower than a mid-sized hatchback.

This two-cylinder engine – I know, two cylinders are more likely to be found on a motorcycle – returns up to 75mpg on a run and more than 56mpg around town, yet it sounds smooth and powerful.

It also zips to 60mph in 12 seconds and would happily cruise at 109mph if you were allowed.

This is an engine of note. It’s the 2011 Engine of the Year which uses advanced technology to get a lot of power from a small unit.

Essentially, it works by reducing fuel consumption by controlling the amount of air which goes into the engine. The result is a very clean and efficient engine which has very, very few emissions.

The TwinAir also features an ECO button on the dashboard. By pressing it, torque is limited for even greater increases in economy and reductions in emissions.

Chrysler also use a stop-start system to make it even more efficient. This is a system whereby the engine cuts out when it’s not needed, for example, while waiting at traffic lights.

As soon as you prepare to start going again, the engine leaps back into life. Like all good ideas, it’s so simple.

I must say that as stop-start systems go, this one can be a little clunky and not as smooth as some of its rivals, but it is does return exceptional economy. But back to the car itself. It’s quite a good looking model which is a five-door disguised as a three-door.

The Ypsilon, believe it or not, is based on the Fiat 500, albeit with a wheelbase stretch which gives it more back-seat space and room for five doors, which ics what city car owners demand these days.

The Ypsilon is still a small car and is significantly more fun-sized than the average supermini. This makes it light, and so it goes well, but for such a tall model it also rides and handles very well.

The TwinAir feels like it doesn’t have much weight up front, which isn’t surprising given the size of the engine. So, even though it doesn’t claim to be a sports car, it does handle a little like a sports hatch.

Make what you will of the styling. I like it but I can see that it might be too radical for some. The rear doors have hidden handles, and the roof floats above that sail of a rear pillar.

Inside, the clocks are centrally mounted to make it feel roomier. The assembly quality is fine and it feels interesting, well-built and funky.

Chrysler Ypsilon

PRICE: £13,195. Range spans £10,695 to £15,695
ENGINE: An 875cc two-cylinder unit generating 85bhp via front wheel drive
PERFORMANCE: Top speed 109mph and 0 to 60mph in 11.9 seconds
COSTS: urban (town) 56.5mpg; extra-urban (country) 74.3mpg; combined 67.3mpg
EMISSIONS: 99g/km
INSURANCE: Group 7
WARRANTY: Three years, 60,000 miles