I’m seeing a lot more hybrids and other fuel-efficient cars on the roads these days, as drivers battle the rising fuel costs. Here’s an innovative auto that promises 41-MPG on the highway: the “smart fortwo.” (The gas tank of the smart fortwo is 8.7 gallons!)

The inventors of the fortwo started sketching out this unique care in the early 1990’s with a Joint Venture between Mercedes-Benz and Swatch, the makers of Swatch watches known for their wide array of colorful designs. Nicolas Hayek, the inventor of the Swatch watch brought his ideas for an “ultra-urban” car to Mercedes-Benz, and Mercedes took on this engineering challenge with the outcome of one of the most innovative cars ever introduced.

Ahh, but is it safe? Mercedes says it is. The tridion safety cell was it’s answer for a small car that can meet high safety standards. The tridion safety cell is a “hard shell” that surrounds the smart fortwo’s occupants with an energy displacing system of longitudinal and transverse structural members.

The auto is made of energy efficient and recyclable materials. For example, only water-soluble paints are used for the smart’s three basic colors – black, white and yellow. Painting the tridion safety cell is done by the powder-coating process. This removes the need for solvents. The body panels with molded-in color are fully recyclable. Environmental management is a high priority in Hambach, France, where the car is made.