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At last. A smaller, higher-mileage, lower-cost Hummer to keep tree-huggers from getting their shorts in a knot.

People who frown at a big Hummer H1 or H2 smile at this little H3.

The H3 is smaller than its giant stablemates, though hardly minuscule. You still need optional tubular assist steps to lift yourself into the cabin and a ladder to reach the roof.

But the 2006 H3 is a smaller Hummer nonetheless, a midsize sport-utility vehicle that’s 16.9-inches shorter in length, 6-inches shorter in height and 6.5-inches narrower than its big brother, the full-size H2.

It can still ford a 24-inch deep stream, however, or climb 16-inch rocks while making its way up a 60-degree grade.

Of course, you usually won’t encounter any 24-inch deep streams or 16-inch rocks on the Kennedy Expressway–but if you did …

We tested the ’06 H3 that went on sale in May. It sacrificed some size, but not the novel Hummer design with its flat, almost cartoon-like roof, bold seven-slot grille, oversized radial tires and wider-than-taller look.

While the oldest and biggest member of the Hummer family, the giant H1, handles and sounds like a bulldozer, the H3 provides a cushioned ride and predictable handling and makes no more noise than a family sedan.

Being wide and squat helps hold the road. As often noted, you have less chance to wobble sitting on a bench than on a stool.

And the H3 is far more agile than an H1 and slightly more so than an H2, with quick-response to steering-wheel input and a turning radius the same as that of a compact Chevrolet Cobalt sedan.

The H3 slips between the lines in the parking lot without having to make a wide swing. Getting out of the parking slot is a bit tricky because the wide roof pillars behind the front doors block some of the side view.

The H3 is smaller because it is derived from the midsize Chevy Colorado/GMC Canyon pickup truck.

“A portion of the population looked at the H2 and said, `Is that really necessary?’ The H3 is more acceptable,” Hummer general manager Susan Docherty said in an interview.

Because it’s derived from the midsize General Motors pickup, H3 offers the same 3.5-liter, 220-horsepower 5-cylinder engine.

Some might argue for more horses, but the Hummer folks were more interested in mileage than muscle. The H3 is rated at 16 m.p.g. city/20 m.p.g. highway with manual transmission, 16/19 with automatic. Being able to boast 20 m.p.g. fuel economy counted more than how fast it can travel from zero to 60 m.p.h.

“The H3 is more acceptable,” Docherty said.

Acceptable, but still not a fuel-sipping economy model. Stay tuned. Docherty thinks there’s room in the Hummer lineup (Business, July 20) for an even smaller, higher-mileage H4.

As noted, the optional tubular steps ($695) are a must for anyone less than 6-feet tall to get in or out of the cabin with a shred of grace. Remember, H3 is a smaller, but by no means petite, Hummer.

You don’t miss being 16.9 inches shorter in length than an H2 when it comes to parking or fitting it into the garage, but those familiar with the H1 or H2 will notice the 6.5-inch narrower cabin.

One of the attractions of an H1 or H2 is that you are at a distance from fellow passengers and can stretch arms and legs without bumping anyone.

While the H3 seats are wide and comfortable, it’s a midsize SUV. You sit closer to those traveling with you, close enough so that in back, you can carry two adults, but save the space in the middle for the pull-out cupholder, not another body.

The cargo hold is large enough for lots of gear. But if you need more space, be warned that the second-row seat backs don’t fold flat and leave about a wall 4 inches higher than the cargo floor. So anything placed on top of the seat backs will wobble.

“That’s something we’re working on,” said Docherty, who admitted to being familiar with the gripe though the vehicle has been on sale only since May.

The H3 comes with an electronically controlled four-wheel-drive system with a low setting and underbody shielding for severe off-roading such as crawling over large rocks or logs or through deep sand or snow. By engaging the low setting as well as locking the rear differential, the H3 boasts it can crawl and climb over anything the H1 or H2 can. And the next time we find a forest full of rocks and logs, we’ll check out that boast.

While four-wheel anti-lock brakes and traction control are standard, StabiliTrak stability control is packaged with the optional 4-speed automatic transmission at $1,695.

The suspension is tuned to absorb off-road punishment while providing a well-cushioned ride on the road. As with the larger H2, the ride is surprisingly smooth, and you’re not jarred on uneven pavement.

The H3 comes with 32-inch, all-terrain, radial tires as standard and 33-inch on/off-road radials as optional. The 32-inch tires are designed more for on-road use and the 33-inch treads are designed more for hardcore off-roading.

The test vehicle had the optional 33-inch radials that may be more at home climbing over tree stumps but acted surprisingly civil on paved roads.

Standard features include air conditioning; power windows, door locks and mirrors; AM/FM stereo with CD player; and rear-window defogger.

Popular stand-alone options include a wide opening power sunroof at $800, side-curtain air bags with rollover sensors at $395 and AM/FM with CD player and MP3 player at $695.

While a starting price of $35,000 was expected, the H3 has a base price of $28,935 with manual and $30,620 with automatic.

The H3’s attractions are its size, price and mileage.

“Full-size luxury SUVs represent 180,000 to 200,000 sales annually, but midsize SUVs represent a couple million so the H3 gives us a vehicle accessible to a larger portion of the population,” Docherty said.

“Whether 5 or 95 years old, everyone recognizes a Hummer, but the H3 is for those who aspired to a Hummer in the past but it was outside their price range, physically too big for them or they didn’t like the mileage,” Docherty said.

“A vehicle under $30,000 that gets up to 20 m.p.g. has opened up the world for Hummer,” she said, pointing out that transaction prices on most midsize SUVs are between $25,000 and $40,000. “We felt it important to let people know there’s a Hummer in their price range.”

H1 and H2 combined sold about 29,000 units last year. The H3 alone should sell about 30,000 the remainder of this year, she said.

“This isn’t going to be a high-volume unit,” Docherty said, adding that high-volume sales are Chevy and GMC’s role. “We aren’t under any pressure by the company to sell 100,000 H3s a year, but I think we can do 50,000 annually.”

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2006 Hummer H3

Wheelbase: 111.9 inches

Length: 186.7 inches

Engine: 3.5-liter, 220-h.p. 5-cylinder

Transmission: 4-speed automatic

Fuel economy: 16 m.p.g. city/19 m.p.g. highway

Base price: $28,935

Price as tested: $35,970. Includes $3,125 for luxury package with eight-way power heated leather seats, AM/FM radio with in-dash CD changer and seven-speaker Monsoon system, lighted vanity mirrors, floor mats and HomeLink transmitter; $1,695 for automatic transmission and StabiliTrak stability control; $925 for on/off-road tires and off-road tuned shocks; $325 for XM satellite radio; $270 for trailer hitch and wiring; and $695 for chrome tubular assist steps. Add $565 for freight.

Pluses: Smaller, higher-mileage Hummer that retains the novel design. Comfortable ride in a vehicle capable of fording streams and climbing mountains. Lower-cost entry into Hummer family that’s also more manageable.

Minuses: Second-row seat doesn’t fold flat. Side visibility hampered by door pillars.

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Read Jim Mateja Sunday in Transportation and Wednesday and Friday in Business. Hear him on WBBM Newsradio 780 at 6:22 p.m. Wednesdays and 11:22 a.m. Sundays.

jmateja@tribune.com