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If gasoline prices stay scary, and they probably will, compact cars will be getting more and more interest from consumers.

But not everybody will want to drive around in a teeny econobox just because it’s good on gas. More likely, U.S. drivers will want small cars with the kind of performance and luxury features they’ve gotten used to.

For 2006, Audi brings in the A3, which should hit the spot for drivers seeking a compact with the elusive combination of luxury, practicality, style, performance and economy. There are few cars in the U.S. market that deliver these attributes; with just the Saab 9-2X (derived from the Subaru Impreza WRX) Lexus IS 300 and Volvo V50 T5, coming to mind.

A3 is a significant upgrade among compacts, with the kind of sparkling performance and fine interior that has brought Audi such a long way during the past decade.

With its versatile five-door hatchback design, similar to Pontiac Vibe or Mazda3 5-door, A3 is a fairly roomy and capable craft. About a foot shorter than A4 and several hundred pounds lighter, A3 gets decent fuel mileage from its turbocharged four-cylinder engine while delivering a strong 200 horsepower.

The test car was equipped with a new Direct Shift automatic transmission that seems like something from a Formula 1 car. This six-speed uses an electro-hydraulic clutch for super-fast gear changes either in automatic or manual mode. Under acceleration, the exhaust emits a racy-sounding “chuff!” at each upshift.

The price is not unreasonable, starting at $26,000, for a premium car with Audi’s upscale reputation.

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The lowdown

PERFORMANCE: The turbo four delivers substantial performance, smoothly refined and with a wide band of torque. Audi says this is the first production engine with turbocharging and direct fuel injection.

A 3.2-liter V-6 is expected in coming months, along with Audi’s signature quattro all-wheel drive.

The Direct Shift transmission is a sweet piece of work, unique among production cars until you are into Ferraris or Maseratis. There are compromises, including some harshness when the transmission downshifts.

A six-speed manual is also available, which would be my first choice.

DRIVABILITY: With sure-footed handling and nimble cornering, highly responsive electric power steering and powerful disc brakes, A3 feels more like a well-sorted sports coupe than a four-door hatchback.

If that’s not enough, a stiffer sports suspension is available. Euro-car buffs will note that A3 shares its platform with the redesigned VW Golf, due in the spring.

One real annoyance: The gas pedal felt jammed between the brake and the center tunnel wall, creating a really narrow space for big-footed drivers.

STYLING: A3 shares the new grille of Audi’s car line, a deep, trapezoidal shape that has sparked some controversy. The more I see it, the more I like it. The shape subtly recalls Audi’s silver race cars of the 1930s.

A3’s styling is appealingly aggressive with broad shoulders and sloping rear roofline. The 17-inch alloy wheels and low-profile tires complete the look.

INTERIOR: Yet another handsome Audi interior, with attractive metallic trim and nicely textured surfaces. A3 comes fully equipped with power and convenience features, befitting its luxury mission.

The accessory dials and switches seem overly complex and non-intuitive.

BOTTOM LINE: Watch for more competition with A3 as domestic and import manufacturers take note, including BMW and Mercedes-Benz.

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RELATED

Vehicle type: Five-passenger, four-door hatchback, front-wheel drive.

Engine: 2-liter turbocharged inline four, 200 horsepower at 5,100 rpm, 207 pound-feet of torque at 1,800 rpm.

Transmission: Six-speed direct-shift automatic.

Wheelbase: 101.5 inches.

Overall length: 168.7 inches.

Curb weight: 3,329 pounds.

EPA rating: 25 city, 31 highway.

Highs: Overall performance, luxury aura, practical design.

Lows: Awkward gas pedal, transmission harshness, fussy dashboard.

PRICING

Base price: $26,140.

Price as tested: $30,085.

OPTIONS

* Premium package with multifunction steering wheel, power driver’s seat, leather seats, storage package, trip computer and Homelink remote transmitter, $2,025.

* Cold-weather package, with heated front seats, ski sack and heated exterior mirrors, $700.

* Metallic paint, $450.

* Sun package, with side and rear sunshades, $200.

* Fog lights deleted from premium package, minus $150.

* Shipping, $720.

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Read more

For more on the Audi A3, go to autos.azcentral.com.