Audi knows it can't rest on its laurels for too long. The German innovator can claim credit for launching the premium end of the hatchback market with the A3 but, driven by its own success, it now needs to up the ante and prepare for more concerted attacks from other premium brands, writes Michael McAleer
The A3's arrival in 1996 injected some class into a segment previously reserved for first-timers and second-car mums. Before then, the hatchback choice was between practicality and economy, or hot hatch performance.
The market split into either utilitarian transport - with the average hatchback serving as school bus and shopping trolley - or mobile stereo for spotty youths with hearing problems, if one were to judge by the volume. In practical terms it meant the average Irish hatchback was caked in dirt and covered in scrapes, or dressed up in a fluorescent bodykit.
Into this fearful market entered the Audi A3. The marque has long battled to be considered among the prestige Germans and there were questions at the time if getting down and dirty with the hatchback brigade might damage the brand. Cynics also said it was merely an ultra-posh Golf, for it shared many of the characteristics and parts with its Volkswagen sibling.
Yet its success - Audi sold about 875,000 units of the original model and hopes to sell 130,000 units of the new model this year - forced BMW and Mercedes to produce their own hatchback versions. The new version of the A3 has arrived in time to combat some new challenges, such as BMW's 1-series next year with sights firmly set on the A3's market. There is also a concerted challenge from the MPVs, which offer more in the way of flexibility for the family.
However, the A3 has represented the original stepping-stone into the world of prestige model ownership. Of course one way to signal premium is through price and the A3 could never be described as cheap. The latest model starts at €25,950 - a lot of money for a three-door hatchback.
The latest version is clearly an evolution of the original, with the most significant development being the use of the new-generation VW Golf platform - in basic English that's the inner structure of the body, the suspension and many smaller components.
It provides a fair indication of what we can expect from the next-generation Golf, Seat Leon, Skoda Octavia and Audi TT. The new wheelbase is 65 mm longer and 30 mm wider, while the car sits 10 mm lower than before. While the lower height has no recognisable difference in space, the majority of the extra floorpan has gone to the rear seat passengers, and this means that four adults can take on a decent journey and travel in comfort.
The new A3 is well proportioned and dominated by smooth surfaces. However, in the company car park only the hardcore fan could tell a new A3 from an old one on sight. Outside, they've hardly touched the exterior at all. If you want to join the hardcore club, keep an eye out for the higher bootline and more rounded front lights, less rectangular than before. Another difference is the lower rake of the C-pillar, and the lower window surrounds. While these may give the car a more coupé look, the driver pays a price when reversing, and rear visilibity is severely impaired.
Inside, and air-con consoles are styled from the TT, a very attractive feature, which has been copied by other manufacturers since. Overall the dashboard is very stylish and tasteful, reflecting a quality rarely seen at this level in the market.
We drove the entry-level 1.6 litre 102 bhp petrol version which featured in the previous model. It's likely to be the best seller here, given our punitive tax regime. While it won't break any records for sprints, it's a very competent entry level to the A3 range, though it does need that little bit extra to take on the rest and you do find yourself calling on all reserves when you push it from start.
The range also features three petrol and two diesel engines. Apart from the 1.6-litre, there's a 2-litre direct injection, or FSI as it's called at Audi, which has 150 bhp. Sadly, Audi has chosen to drop the 1.8 litre turbo engine, which would have been well-priced in Ireland, given the new VRT rates putting cars over 1,901 cc into the higher tax band.
On a happier note, the flagship 3.2-litre Quattro V6 250 bhp version will be launched next autumn - the fastest A3 model ever, with a top speed limited to 155 mph. As for diesel, a 2-litre 16 valve TDi with 140 bhp is be on offer, with a a 1.9-litre TDi with 105 bhp coming in September. Depending on the engine, five or six speed manual transmissions are available, plus a tiptronic six-speed automatic. Both two-litre engines will have the option of the fantastic new direct shift gearbox system (DSG), launched earlier in the year on the high-powered 3.2-litre TT. Having tested it at the time, in our opinion it represents the future of the gearbox.
Behind the wheel, and the new rear suspension system is impressive, making the A3 competent on Irish roads, allowing for higher cornering speeds. We were driving the base level Attraction model with standard suspension and found it quite firm, particularly on back roads. We suspect the sports suspension on offer should be reserved for higher-powered engines, and those prepared to accommodate the harsher ride. It's unlikely to find favour in Ireland, however. The new speed-related electro-mechanical steering makes for light and easy parking, but leaves the steering a little dull and lifeless on the road.
Getting back to some of the basic elements of a hatchback, the A3 does allow the rear seats to be folded down and expanding the boot space from a claimed capacity of 350 litres to 1,100 litres. However, while in other markets there will be a puncture repair kit as standard, Irish models will come with a full size spare. This is one of several changes in specification between the A3 as sold on the Continent and the model sold here.
As much as we may gripe about the price of the A3, Audi Ireland has cut back on some other elements in order to keep it competitively priced against the BMWs and others. The result is that among the list of standard features omitted are the Electronic Stabilisation Program (ESP) and amazingly for a car of its class, air-conditioning. ESP is a monitoring system that adjusts the likes of ABS and wheel-slip controls so that they come in earlier in real emergencies but don't interfere in normal circumstances.
In terms of safety, it comes with six airbags, traction control and ABS as standard, and the solid feel gives a certain degree of confidence that it will do well in the Euro-NCAP.
The A3 has always offered more than merely a family runaround. It may seem expensive, but it has always maintained a build quality of a much larger premium car and has attracted high resale prices. The traditional door test emits a vault-like sound more in tune with sizeable German premium than cheerful hatchback.
It may not quite meet the "premium athlete" hyperbole attributed to it by Audi, but it's certainly the leading premium compact this summer and further improvements to the build quality puts further distance between it and the Golf.
FACTFILE
ENGINE: Aluminium 1,595cc inline four-cylinder outputting 102 bhp and 148 Newton Metres (Nm) of torque at 3,800 rpm.
PERFORMANCE: Top speed of 115mph and a 0-62 mph of 11.9 seconds.
SPECIFICATION: Entry level Attraction has six airbags, traction control, but without air-con or ESP as standard.
FUEL: Urban: 29.4 mpg. Extra-urban: 51.4 mpg. Combined: 40.4 mpg.
PRICE: €25,950 - €43,750 for 3.2 quattro (Test Car: €25,950)
THE COMPETITION
Audi A3 1.6 3dr Attraction. 1595cc; 11.9 (0-62); 115 max speed; 102 bhp; 40.4 mgp combined; €25,950
BMW 316ti Compact 3dr. 1796cc; 10.9 (0-62); 125 max speed; 115 bhp; 40.9 mgp combined; €31,500.
Mercedes Sports Coupe 180 Kompressor 3dr. 1796cc; 11.6 (0-62); 130 max speed; 129 bhp; 30.1 mgp combined; €36,365
Alfa Romeo 147 3dr Twin Spark. 1598cc; 10.0 (0-62); 122 max speed; 120 bhp; 34.4 mgp combined; €22,685.
Volkswagen Golf 1.6 100bhp 3dr. 1598cc; 10.8 (0-62); 117 max speed; 100 bhp; 40.4 mgp combined; €20,435