Dodge has introduced a remarkable replacement for the Neon. The all-new 2007 Dodge Caliber draws the best elements from hatchback, wagon and minivan designs, delivering a vehicle that doesn't truly fit in any existing category but does a lot of things quite well.

A five-passenger, five-door hatchback-cum-small station wagon, the Caliber offers a choice of four-cylinder engines. There's also a choice of front-wheel drive and all-wheel drive, the latter making the Caliber a capable winter vehicle. The Caliber is relatively affordable. Its starting price is below last year's Neon, and fuel economy is respectable, achieving 28/32 City/Highway miles per gallon in its most frugal form, according to federal government estimates. At the other end of the scale, an SRT4 version is expected in spring 2007 with a turbocharged engine generating 300 horsepower.

The front seats are comfortable, with lots of headroom, and there's a large amount of cargo space here. Packaging is functional, with folding rear seats that have an optional reclining adjustment and an optional fold-flat front passenger seat to make room for a ladder or more likely, a surfboard. A couple of innovative options, especially for a car in this price class, are an air conditioned compartment in the glove box to chill water bottles or sodas and a swing-down stereo speaker panel attached to the liftgate that converts the back end to a sound stage for beach parties or tailgating.

The Caliber is no sports car, but we most enjoyed the mid-level SXT model with the 2.0-liter engine and five-speed manual transmission.

Dodge is gambling a huge chunk of change on the hope new car shoppers looking for value and function can be persuaded hatchbacks are acceptable again, that five-door, small wagons have a place in American garages. The Caliber makes a good case.