Our view: 2006 Audi A3

With the flip of a hatchback and the turn of a 200-horsepower engine, Audi has an important decision to present to the American public: Can you walk away from your honking SUV?

In its new A3, Audi is embarking on an interesting test. It is trying to sell a small car to a country that typically likes things a block long. No super-sizing here. No extended wheelbase with this little car.

Audi’s A3 is all about an alternative mode of transportation. It is the pleasure of a small car with seating for five. It is a price point around $25,000, but with premium features. And it is a little bit of Europe in America.

The A3 is a cultural change. But, boy, is it a wonderful one.

The four-door A3 is all about being premium. About the same size as a Ford Focus ZX5, the A3 uses materials that are hardly like your typical domestic. The inside of the A3 is not what you would find in this segment of small- or medium-sized cars. The dashboard is textured and smooth, not plastic. The steering wheel is thick, not thin. And the seating is firm, not flimsy.

Think I’m not being American enough? Talk to General Motors Vice Chairman Robert Lutz, who mentions the name “Audi” in every mention of “nice interiors.” The same holds true in the A3.

Everything fits together. Nothing rattles. And it all looks larger than the A3’s $26,140 price tag for front-wheel-drive models.

In typical Audi fashion, all-wheel-drive models will arrive next year. That’s a bonus because in our front-wheel-drive tester, the 2.0-liter turbocharged four-cylinder engine was a little too aggressive for the thrust exerted on the front wheels.

Sometimes the steering wheel tugged a bit too much. Often the front wheels spun too often. Those are minor nuisances. On the road, this is a fun, sporty and aggressive car that takes twists and turns like a car twice its price, delivering sporty dynamics, solid handling and a quiet ride. On the highway, it’s tough to tell you are riding in a car that is a base model for Audi.

The torque band on the car — the range where the A3 will push you back in your seat — is so wide, you can drive the vehicle in low gears and zip in and out of traffic with ease.

Speaking of gears, the A3 comes with a six-speed manual gearbox or the optional and sporty Direct Shift Gearbox automatic transmission that allows you to manually shift using paddles on the steering wheel. It’s pure fun.

Another sporty alternative: A bigger engine. Audi will make a 3.2-liter V-6 available early next year with 250 horsepower and all-wheel-drive.

So winning scores all around? It’s pretty close. The A3 can seat a family of four comfortably, including a baby stroller in the rear hatch. Five might be a squeeze.

The ride is comfortable. The map pockets, storage bins and center console give lots of options for stuffing things away.

Standard equipment is plentiful: electronic stability control, dual-climate control, power windows and locks, cruise control and anti-lock brakes. There’s a lot to like for a car that will be a big leap for some.

Small car? Sure. But nobody said it couldn’t be fun.

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2006 Audi A3

Vehicle type: Front- or all-wheel-drive, front-engine, four-door, five-passenger wagon

Key competition: Subaru Forester, Ford Focus, Saab 9-3

Base engine: 200 horsepower, 2.0-liter turbocharged four-cylinder

Transmission: Six-speed manual or Direct Shift Gearbox automatic

Standard safety equipment: Dual front, side and inflatable curtain head air bags; four-wheel anti-lock brakes

MPG rating: 24 city/30 highway (base engine)

Manufactured: Germany

Warranty: Basic warranty is four years/50,000 miles.

Base price: $26,140

Price as tested (including destination and delivery): $30,560