It doesn't seem too long ago that small cars were a treatment instead of a treat. They tended to be noisy, choppy, underpowered and unrefined.

The redesigned Mercury Tracer wagon is here to remind us that that is no longer necessarily true.The Tracer wagon I tested turned out to be pretty slick business for an automobile with a base price of $12,605. It was a smooth, relatively refined, comfortable car with surprising agility. It also had a fair amount of pep, given its exceptional fuel economy.

Like its virtually identical stablemate, the Ford Escort, the 1997 Tracer is a truly new car as well as a truly superior one. The drivetrain and fully independent suspension have been re-engineered and the exterior and interior have been restyled. The only significant carry-over componentry on the new car is the main underbody structure, and even that has been comprehensively reinforced.

The underbody beef-up gives the new car 25 percent more torsional rigidity than the old one. That kind of improvement in platform strength reduces body noise and allows engineers to soften up the suspension without a relative handling penalty. In fact, the Tracer's and Escort's designers softened up the rear suspension only to improve the ride. The front suspension was actually stiffened to enhance stability and reduce body lean in the corners.

The bottom line for all this platform and suspension massage is a nice-riding little car with affable handling characteristics. The amount of speed you can carry into a corner with this practical little beast of burden is a pleasant - and pleasurable - surprise.

Driving pleasure was further increased through steering-gear modifications that improved road feel and steering response. Braking efficiency was augmented by increasing the rear brake-drum size from eight to nine inches.

Engine performance also benefited from the redesign. The Tracer's and Escort's 1.9-liter four was enlarged to two liters and extensively revised, bumping up its horsepower rating a hefty 25 percent - from 88 to 110. This boost was affected largely by a unique "split-port" head design that allows better breathing.

The power increase doesn't turn the Tracer into a road racer, but it does endow it with adequate oomph. The car is, of course, livelier and more fun to drive with the standard five-speed manual transaxle than with the optional four-speed automatic.

Happily, the engine's Machiavellian power grab was accomplished with virtually no trade-off in fuel economy. The wagon I tested had EPA mileage ratings of 28 city and 37 highway. I got 30 mpg in mixed driving.

The new car is noticeably quieter and more vibration-free than the old, and I think that reduction in sound and fury is one of the chief reasons the '97 Tracer seems more refined.

The increases in finesse are coupled with pleasing styling. The Tracer wagon is a fairly conservative design, but a very clean and cohesive one.

I also appreciated the test car's interior design, which was useful and attractive. I like the flow and unity of this design and think you'd be hard-pressed to come up with a more satisfying small-car interior.

The Tracer also turned out to be roomy by small-wagon standards. The car seats five with reasonable comfort, providing decent leg- and headroom for back-seat passengers. The cargo area behind the split-folding back seat contains a generous 30.6 cubic feet of storage space.

Standard safety equipment on the Tracer wagon includes dual air bags and child-proof rear-door locks.

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Mercury Tracer wagon

Base vehicle: Front-wheel drive, two-liter engine, five-speed manual gearbox, fully independent suspension, power steering, power disc/drum brakes, 14-inch steel wheels, P185/65R14 all-season tires, dual air bags, child-proof rear-door locks, 5-mile-per-hour bumpers, intermittent wipers, stereo, 100,000-mile tuneup interval, cargo cover, console, split-fold rear seats, tachometer.

Test model: Anti-lock braking system, alloy wheels, air-conditioning, rear window defroster/wiper/

washer, power mirrors, power door locks, power windows, security system, stereo/cassette, roof rack, floor mats, tilt steering, speed control, integrated child seat.

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