After teasing us with several small-car concepts over the past two years, Nissan finally has announced a sub-Sentra car that actually will reach production in mid-2006 as a 2007 model, but it's not as cool as any of those concept cars. Instead, we'll get the Versa, based on the Tiida that is already sold in other markets. Nissan will bring out a hatchback first, followed by a sedan in early '07.

The Versa will join an all-new Sentra and Altima in Nissan's 2007 lineup. The Sentra originally had been scheduled to debut for 2006, but Nissan delayed its introduction for a year to tweak the car's styling and performance.

The Versa will be powered by a 1.8-liter four making about 120 hp and delivering up to 38 mpg when mated to the optional CVT. Prices will start at about $12,000.

Nissan has made it clear that the Versa will not be its only sub-Sentra car, so look for the Cube (Nissan's version of the Scion xB) to arrive here by the 2008 model year.