The Toyota Prius, the first mass-produced, gas-electric, hybrid-fuel vehicle available worldwide, went on sale in Japan in 1997. Three years later, Toyota’s second-generation Prius was introduced in the U.S.

General Motors (GM) had experimented with electric cars, but due to technical limitations, its EV1 was only marginally successful. Toyota, Ford and Honda all took a different approach, betting cleaner-running, high-mileage, gas-electric, hybrid vehicles that performed as well as traditional ones, and cost no more to own or operate, was the shortest route to affordable production cars acceptable to the mass consumer market.

The first U.S. Prius had 2 powerplants — a conventional 4-cylinder, gasoline-powered engine, and an electric motor. The electric motor primarily powered the car, but when the batteries were low or more power was needed, the gasoline engine took over. A device on the brakes recharged the battery, so plugging into a wall socket or recharging station was unnecessary. When it idled, or the car was stopped, the gas engine shut down.

Unlike the competing Honda Insight, the Prius, based on Toyota’s bottom-of-the-line Echo, offered room for 4 adults and had a normal-sized trunk for a small sedan. It was functional, but short on power, and built with way too many cheap parts. Although not necessarily stylish, it didn’t shout “geekmobile” like the Insight either.

Toyota debuted a new Prius for model year 2004. This version is much improved in terms of style and function, and features Toyota’s new Hybrid-Synergy Drive powerplant. With a six-inch longer wheelbase, the new Prius also moves from the economy to mid-size segment.

Walkaround: Although considerably more stylish than the previous version, the new Prius is still unique — which works both for, and against it. Although some designers think it needs to look different, its aerodynamic shape is also a critical component in maximizing fuel economy, and minimizing interior noise.

Interior: The new Prius has a much-refined version of the futuristic interior attempted in the previous model. Instrumentation is centered along the top of the dashboard, instead of directly in front of the driver. It features a thin digital readout for the speedometer, fuel and other gauges and warning lights. The seven-inch Multi-Information Display screen — the largest in any Toyota or Lexus vehicle — provides status information on electric power usage and regeneration, and manages the climate and audio controls. The display is also used by the optional navigation and hands-free Bluetooth communication systems, which communicate with the driver’s cell phone, if properly equipped.

The front seats are comfortable and supportive, while rear seat room is very good. Four adults can ride comfortably.

Under The Hood: The 2004 Prius is powered by Toyota’s new front-wheel drive Hybrid Synergy Drive system, which it describes it as a “full hybrid system” capable of operating in either gas, or electric mode. It also has a third mode combining both gas and electric power.

The Hybrid Synergy Drive is basically a 1.5-liter, dual overhead cam, 16-valve, 76-horse gasoline engine with a piggybacked electric motor. The gasoline engine features variable valve timing to optimize power across the engine’s rev range. The electric motor produces its maximum power, 50KW — equal to 67-horses — from 1,200 to 1,540 RPM with a peak torque of 295 lb-ft.

Gas mileage has been confirmed by the Environmental Protection Agency (EPA) at 60/highway, 51/city for a combined 55 miles per gallon. The Prius is also certified for a $2000 clean-burning fuel tax deduction on your 1040.

Options: The Prius comes standard with lots of comfort and convenience features — some of which are optional on more expensive mid-size cars. These include cabin filtration, cruise control, power windows and door locks, and remote keyless entry.

Another Prius option that’s generally only available on significantly more expensive cars is the hands-free Smart Entry and Start Option. With the key fob in your pocket or purse, pull on the door handle, and an on-board sensor detects the key, and unlocks the door. Hop in, push the start button, put it in gear, and you’re off. This isn’t only convenient, but an important personal safety feature for people in parking lots or buildings at night.

Behind The Wheel: The 2004 Prius is no hot rod, but on the other hand, you’ll stop more than half as often for gas. On a trip, that could save some significant time.

On the freeway in spite of its minimal horsepower, acceleration was surprisingly as good as any other conventionally-powered car its size. The Prius kept up with 70 mph traffic effortlessly, and handled confidently on two-lane blacktops. The solid-feeling steering wheel gives the driver a sense of control and of course, engine noise is minimal. The ride seemed as good, if not better, than that of conventional cars in the same price range.

Anti-lock brakes are standard. They’re also regenerative, which means when in use the electricity generated by the friction of the brakes recharges the car’s batteries.

Interestingly, Toyota licensed its Hybrid Synergy System to Nissan for use in its hybrid vehicles coming to market shortly. Nissan is a company that generally prefers to develop and own the high-quality technology it uses. Choosing to use Toyota’s technology attests to its quality.

 Whines: The Prius is still slightly geeky looking, and the rear deck compromises rear visibility. In order for it to sell like mainstream cars, it needs mainstream styling people want to own. The Prius already competes for environmentally conscious buyers with the Honda Civic, and soon-to-be released Lexus RX330 Hybrid; proving mainstream looks are going to be critical to the success of the product.

Bottom Line: The 2004 Prius is a good value for the money. It’s larger, faster, much more comfortable and quiet and gets better gas mileage than the car it replaces. The Prius delivers quality and interior room rivaling the mainstream Accord, Camry, and Taurus. Plus, you’ll sleep better knowing you’ve done something good for the environment — and helped the United States reduce its dependence on foreign oil. The Prius belongs on your short list for a test-drive.