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Audi’s return from the dead to become one of the world’s top luxury automakers can be traced to 1995 and the compact A4.

This little sedan was quick, agile and fun to drive. It had a great look and an athletic stance. Immediately, it was seen as a clean rival to the top contender among compact sports sedans, the BMW 3-Series.

A4 heralded a new line of well-engineered and handsomely styled Audis, including its all-aluminum flagship, A8, and the wonderful TT sports car. It has been a great run for Audi and its corporate sibling, Volkswagen, each enjoying a meteoric rise in popularity.

For 2002, Audi redid the A4 from the ground up, boosting its length more than 2 inches and its width more than an inch, giving it a powerful new 3.0-liter V-6 and a nicely upgraded suspension system, and restyling it with the distinctive look of the bigger A6.

The new A4 is certainly a beautiful, performance-oriented sedan, but the redesign has resulted in a trade-off. The larger size and about 400 pounds of extra weight have caused A4 to lose some of the edge and spark that made it such an interesting driver’s car in the first place. That’s just a matter of degree, since the new version still eclipses most sport-sedan wannabes.

The test A4 was loaded with options, including the new V-6 and Audi’s quattro all-wheel-drive system, which adds traction on slippery surfaces and enhances stability on dry pavement.

Cornering remains impressive, and the A4 has Audi’s typically smooth, responsive steering. Audi has one of the nicest steering systems anywhere, an attribute it shares with VW. The ride is very good, with the optional sport-tuned suspension quite firm but never harsh and absorbing bumps with a graceful shrug.

The new engine is very strong once you get it up in the revs, but off-the-line acceleration is soft. Above 3,000 rpm, this engine really rocks, with a solid 220 horsepower as it gets up into the 6,000-rpm range. I was glad the test car came with a close-ratio, six-speed transmission, which made best use of the engine’s power range.

Shifting is silky smooth, with well-spaced gearing for easy cruising or sporty back-road maneuvering. One clinker was the test car’s clutch, which did not engage smoothly.

The standard engine is a 1.8-liter turbocharged four, a nice-running engine I’ve sampled in other Audis and VWs. Optional transmissions are a five-speed automatic and a remarkable new continuously variable transmission, or CVT, that comes only with the turbo four and front-wheel drive. I’ve read mixed reports about the CVT, most saying it is smooth and comfortable but lacking in performance.

The new body style looks fine, muscular and techno at the same time, and borrows cues from both the A6 and the TT roadster. The larger overall size increases interior space and mostly benefits rear-seat legroom. In the former A4, legroom was so paltry in back that I suggested the rear doors were just for decorati on. Legroom grew in the new car.

The dashboard gauges and controls are simple and businesslike, with lovely wood and leather accents. The A4 remains cupholder-challenged: There’s one that pops out from the dash that is a shallow, flimsy device, plus two in the console, where the cups get in the way.

The base price for the 3-liter, quattro A4 exceeds $32,000, but that includes a full passel of luxury features and power accessories. The test car also was optioned up with leather seats, $1,320; sunroof, $1,000; a sport package of 17-inch alloy wheels and performance tires plus sport-tuned suspension, $750; Bose premium stereo, $650; a package of remote garage transmitter, memory seat positions, and auto dimming side and interior mirrors, $550; heated seats, $525; plus a couple of other items, pushing the bottom line above $38,000. Compared with its nearest competitors, Mercedes-Benz and BMW, that’s still not bad.