2006 Audi A3 front.jpg

Audi has news even bigger than its new corporate schnoz, and that would be the A3. As the number hints, the A3 will slot just below the A4 in size and price, as much as the A4 would seem to set the bottom possible limits for a company of this caliber. BMW, and more recently, Mercedes have failed with "premium compact hatchbacks," though the A3's body leans closer to wagon. Its featured engine is a new direct-injection, 200-horsepower 2.0-liter 4 that Volkswagens will share; another shared new feature is electro-mechanical steering. Transmission choices are planned to be a manual or a Direct Shift Gearbox – the famous smooth, twin-clutch transmission found on the TT. The 2006 A3 hits the streets in May for about $25,000.