Audi S3

OF all the Volkswagen companies, Audi is probably in the best health at the moment. In fact, it's hard to think of a time when it was better. The Ingolstadt concern has even rediscovered the art of making great fast cars.

Not so long ago this vehicle's predecessor (the first generation S3) was about the best driver's car you could buy with an Audi badge, regardless of cost.

Since then, we've had the somewhat surprising success of the new TT, the terrific (and soon to die, sadly) RS4 and, earlier this year, the frankly bonkers Ferrari-baiting R8 supercar.

No wonder hopes were so high for the new S3.

Surprisingly, Audi eschewed the opportunity to use the VW Golf's 3.2 V6, preferring to stick with the tried and tested turbocharged four-cylinder already in service with the SEAT Leon/Golf GTi twins.

Audi's reasoning was simple: it wanted more power for the S3 and extracting extra horsepower from the V6 wasn't possible without going to great expense. Upping the bhp on the turbo 2.0-litre was relatively straightforward.

That's not to imply that Audi hasn't gone to town. The familiar 1,984cc turbo engine gets stronger pistons, tougher con-rods, improved bearings, a strengthened block and an overhauled bottom end. That should make it more than capable of dealing with the new power output of 261bhp at 6,000rpm.

More importantly for day-to-day driving, the motor's hefty torque curve is a broad plateau between 2,500rpm and 5,000rpm so there's plenty of shove-in-the-back available at sensible speeds.

Pushing this much power through the front wheels would be a recipe for disaster so the S3 channels its bhp to all four via Audi's legendary Quattro set-up (up-rated, naturally). As an indicator of just what lengths Audi went to on this car, it re-positioned the clutch to the rear because doing so would improve the weight distribution.

The shift action of the six-speed manual gearbox has also been tweaked. There is less movement between ratios and the lever moves more easily. Thus there are no excuses for fluffing a gear change, even when you're pressing on a bit. As befits a high-performance hatchback, there is no automatic option (although a DSG version would be something to look forward to at some point in the future).

Audi's engineers didn't throw in the towel with the engine. They moved on to the chassis and steering.

Good as it was in the old S3, there was still room for improvement. Here the dampers are of the highest available specification for a smoother, more mature ride. This has allowed Audi to chop the ride height by 25mm with no ill effects.

Bigger brakes peer out from behind the standard-fit 18-inch alloy wheels, wearing 225/40ZR tyres, and the suspension is forged from lightweight aluminium.

Visually, Audi has resisted the temptation to deck the S3 out like an after-market accessory department.

The only major differences between it and a standard A3 are the silvered mirrors, the chin spoiler/splitter and side skirts.

The steering wheel is a chunky, leather-covered item with a discreet S3 badge. The same logo crops up on the gear knob. For drivers who must have the absolute ultimate the seats from the RS4 are also available as an optional extra. For the rest, the bolstered sports jobs, fitted as standard, are plenty comfortable.

The rest of the interior is typical German: deadly serious. The backlit instruments are clear and concise. It's good to see a proper temperature gauge alongside the petrol read-out.

A sliver of silver surrounds the air vents. Turn the knurled ring for airflow and direct the stream via a small knob. Simple, quick and very efficient. The climate control does a good job and driver/ passenger can have different settings.

The chunky steering wheel also has remote controls for the audio volume and channel-seek settings. It adjusts for reach and rake. If you want the multi-function wheel, though, Audi wants an extra £160, which seems a bit mean.

Satellite navigation is available but it'll cost you extra as well. A £320 multi-disc CD is hidden away in the glove compartment.

Audi reckons it can play MP3 discs but it refused everything I offered - care is obviously needed with the disc directory structure before you can be certain of hearing ten hours worth of music on one CD.

Audi's engineers have examined all the key touch points (the bits where your fingers come into contact with a switch or a stalk) and made sure they feel classy.

This is a car that feels very well built indeed.

There's less room in the back for passengers though. The middle seat is a particularly perch, sitting, as it does, on top of the transmission tunnel, so it's best to think of the S3 as a four-seater.

The deep boot is a reasonable size for a small family and makes the S3 a practical hot-hatch proposition. The S3's ride is firm but not bone-jarringly awful. It feels smooth and sophisticated on most surfaces. The steering is very light at walking pace but weighs up nicely at higher speeds. There's decent feel through the steering wheel - more than you'd expect of a hot Golf/Astra etc.

The performance is more than you'd expect of a Golf GTi as well. Sixty comes up in less than six seconds and the top speed is artificially limited' to 155mph.

Although I didn't have the chance to find out, the S3 felt as though it wouldn't stop charging until it topped out.

Although we're talking about a small capacity turbo in a high state of tune, careful attention to detail ensures there is virtually no lag with punch from 40mph even in fifth gear (although not the overdrive sixth).

This sort of searing pace can leave even the Astra VXR behind.

To get the better of an S3 you need to be driving a Subaru Impreza STi and even then it's a close run thing, with just a tenth of a second in it to 60mph and a couple of mph at the top end. The Subaru's rock-hard ride and garish bodywork makes the S3 feel the more mature product.

When the first S3 arrived it was pretty much in a class of one - more prestigious than an a cooking' hot-hatch, less hard-core than an Evo or an STi - and that's pretty much the story with this successor.

The latest S3 has improved on its predecessor in every area and it's still the only option if you want a prestigious hatchback with near supercar performance.

Neither BMW nor Mercedes can offer anything like it.

Yes it starts to look expensive when you tick the options list, but with starting prices below 27k and a sublime driving experience, I reckon plenty of drivers will be happy with the basic' car.

So it looks as though the new S3 maintains Audi's impressive hit rate. Next up is the BMW M5, the car Audi has in its sights with a new RS6. The Beemer boffins have caused to be worried.