Fuel efficiency, styling, and stellar reliability have become instantly synonymous with the Toyota Yaris, the B-segment compact from Toyota. It's all the rage in Europe and is now steadily winning hearts and minds on our turf. For the 2008 model year, Toyota blessed both the sedan and liftback with a number of much-needed improvements. I favor hatchbacks, so I'll be focusing on the latter.

On other Toyota vehicles like Corolla, the "S" insignia has never really meant much; maybe some "ground effects" and a rear spoiler for a meaner look, but nothing that would warrant stamping it with extra letters. The 2008 Yaris Liftback S, on the other hand, benefits from a number of tangible improvements.

For starters, 15-inch steel wheels with P185/60R15 tires and full wheel covers become standard. Further adding to the sporty posture are the Color-keyed front/rear under-bumper spoilers and side rocker panels. Inside, you'll find a leather-trimmed steering wheel and shift knob, as well as driver and front-passenger bucket seats made of seemingly more durable cloth.

If you think these so-called upgrades still don't live up to the "S" badge, much less an extra $1,675, you are absolutely right. That's why I saved the best for last.

The most significant improvement comes in a form of the amber-illuminated Optitron tachometer. That's right, the Yaris finally gets a tach! Tuner enthusiasts will especially appreciate the tach gauge, as it facilitates throttle modulation and more precise, performance-oriented shifting.

Of course, with its lackluster drivetrain and spongy suspension, the Yaris Liftback S is still no match for the edgy, VTEC-powered Honda Fit. But the new bucket seats, tachometer, and a $12,975 price tag certainly make for a solid alternative.