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Before our review of this brand new model from Audi, we have to mention 2 technical innovations involved with this model: DSG (direct shift gearbox), and the 2.0L FSI (Fuel Stratified Injection) engine, which just garnered the honor of International Engine of the Year.

First of all, the new A3 resides at the bottom of the Audi family, but it contains the most advanced technology that is shared through out Audi’s product range. The DSG is a good example. This is an automatically shifting manual gear box. It can be operated as a normal automatic transmission, but it is actually an electronically controlled double clutch plate manual transmission. In manual mode, it shifts much faster than normal human can, and more efficient than a normal manual transmission.

The turbo charged 2.0L FSI engine is another innovation. Maximum output is at 200 hp @ 5100 – 6000 rpm, and 207 lb-ft @ 1800 - 5000 rpm. We were really addicted to the flat power band of this engine. Instant power on demand, whether it’s in the city or on the highway, this power plant can handle with ease.

A3 has a smartly designed exterior. It is a 5 door hatchback/wagon. The look is solid yet sporty. A large air dam underneath the Audi family trapezoid grill gives out an aggressive stance. The wheel wells are filled with 17” alloy wheels with meaty rubber. The look is purely German.

The interior’s design is purely Audi. The excellent fit and finish is standard. The touch and feel is above average. Back seat passengers have ample room to move around. Split folding back seats can increase the already excellent 19.52-cu.ft. of cargo space. The ride is firm and quiet.

Starts at $25460, we think this A3 is an excellent value. It offers enough performance to qualify as a sports sedan, also enough utility to qualify as a family vehicle. The combination of luxury, comfort, and performance makes it one of a few vehicles that stand above the crowd.