FIVE-DOOR PLEASURE; Audi A3's 12-month, nearly trouble-free service gets two thumbs up.(News)

Byline: ROGER HART

The yearlong test of Audi's A3 was initiated in part to see how well the firm's move down-segment could be executed. Most automakers want to move up, but Audi is already there; its reputation for quality sedans is established. That includes the A8L, a car picked as the AutoWeek Reader's Choice best luxury sedan winner (AW, Nov. 6).

Audi has made and sold small cars in Europe for years, but the five-door A3 is its first U.S. foray into the compact segment. Despite its smaller size and hatchback design-a configuration not wholly embraced by American consumers-it's not a cheap ride. With a base price of just less than $27,000, the budget-minded needn't apply. Audi calls it compact luxury. To bump the sticker up, a few options made battling winters easier-heated seats, heated washer fluid, heated mirrors-along with 17-inch aluminum wheels with all-season tires, and leather seats that pushed the sticker to $30,765.

Many were not taken with the hatchback design as others appreciated the ability to fold rear seats flat, opening up a station-wagon-like cargo hold. Throughout the year, it carried everything from a week's worth of luggage to a 32-inch television, and from the bounty of a shopping safari at Costco to camping gear. The interior was typical Audi excellence with simple, straightforward controls and elegant finishes. All interior surfaces held up well through the year. The only interior glitch was a broken lock for the manual sunshade, which was replaced under warranty. Several Audi A3 owners noted the fragility of these shades after similar experiences.

While the A3's design was met with some indifference, no one was disappointed by its powertrain. The 2.0-liter, 200-hp turbocharged four had a wide band that was easily exploited through its six-speed Direct Shift Gearbox. Reader-owners agreed; a typical response came from Rod White of North Las Vegas, Nevada: "The first love of the A3 is engine. The torque and response is great. Second love is the DSG transmission, and this is from a guy who said he would never buy a vehicle with an automatic unless it was a large sedan or truck.''

Mike Kim of Redondo Beach, California, agreed: "The engineers who designed this drivetrain and the DSG transmission deserve a medal. ... All automakers should take note of how a proper sequential shift transmission should work.''

A few staff members said they'd have preferred a clutch and a stick, but they were clearly in the minority. Living with the DSG for a year has reinforced our impression that, to date, the Volkswagen/Audi group has developed the best of these sequential manual gearboxes. Put the shifter into manual mode and have a go, as would a Formula One driver, via steering-wheel-mounted paddles. Listening to the throttle blip to match engine revs on downshifts is ...