Courtesy of the economy, environmental awareness and gas prices, Americans are buying more compact cars than ever. And with demand comes supply. In the last year, manufacturers have released a handful of game-changing small cars. Chevrolet’s all-new Cruze is among these exceptional new compacts.

Small cars have taken gigantic strides forward, in nearly every department, from interior finish and highway driving noise to performance and styling. This new batch of compacts especially stands out in fuel economy. Here, the 2011 Cruze delivers an astonishing 42 miles per gallon on the highway, when equipped with the inexpensive Eco package. For the record, that’s better highway mileage than some hybrids.

The base Cruze, without the Eco package, starts at about $16k and delivers an impressive 36 mpg on the highway. These are incredible numbers that some of us wouldn’t have believed just five or 10 years ago—not for a car this roomy and comfortable.

In performance, safety, gas mileage, interior quality and value, the Cruze is truly a world-class compact car. And it has to be. Ford’s new Focus and Hyundai’s new Elantra have, like the Cruze, raised the standard in this category. Toyota’s Corolla—long the reigning champ in this territory—now seems outdated, tired and even cheap compared to the Cruze, Focus and Elantra.

I came into this review a big fan of the new General Motors. Since its bankruptcy, GM has increased the quality of its cars and has recently overtaken Toyota to reclaim the title of world’s largest auto manufacturer. A handful of GM’s new products shine as true world-class leaders—the Cadillac CTS, the Buick LaCrosse and, now I would add, the Chevrolet Cruze.

Inside, the Cruze combines high quality interior components and optional two-tone interior scheme to create a cabin that is both stylish and comfortable. It’s here, in the cabin, that the Cruze most stands apart from its competitors. If you plan to drive with passengers or to haul reasonable amounts of cargo, the Cruze is your car.

While the Cruze delivers better gas mileage than most its competitors, it also packs a lot more space. Chevrolet crammed 95 cubic feet of passenger space into the Cruze’s petite little frame. That’s three more cubes of feet than the Corolla and four more than the Civic. In the trunk, the Cruze can hold 15.4 cubic feet of goods, significantly more than the Focus, Corolla or Civic.

Since many Cruze drivers will be young enough to own iPods, iPhones or other MP3 players, the Cruze offers direct plug-in access via two different methods, both conveniently placed under the center armrest.

Speaking of younger drivers, you might be amazed to learn that a base model Cruze comes standard with a class-leading10 airbags. That’s front and knee airbags for both front-seat passengers, side-impact airbags for all four passengers and two additional side curtain airbags stretching the length of the windows. For this and other reasons, the Cruze has earned a handful of top safety ratings.

For a long time, Chevrolet’s compact cars have been sub-par bargains. That’s no longer the case. The new Cruze truly competes with the best in the world, leading serious competitors in safety, value and gas mileage. If you’re shopping this segment, or if you’d just like to get 42 mpg, be sure to test-drive the Chevy Cruze.

© 2011 John Dickerson, Horsepower Auto Reviews