THE headline almost came with the same element of surprise as one which screams "Poms win the Ashes".
A British magazine recently carried a cover story which simply said "RS4 beats new M3".
It was the face-off everyone who takes even a passing interest in supreme compact German performance had been waiting rather impatiently for.
Until now everything that had come up against the M3, which started life as a four-cylinder more than 20 years ago then progressed for a few generations as a cracking inline six before going the grunt with a high-revving V8, had come off second best.
So at least from a magazine's measure, Audi has come of age. And how.
Beating the super coupe by which a performance chassis is measured is no mean feat.
But this test is not about the M3 nor, for all its glory, the RS4.
It is about the Audi S3, which unlike the RS4 has few direct rivals.
Even so it will be of no surprise that the second-generation S3 crackles and sizzles.
At $65,500, this two-door hatch is not on everyone's shopping list, as defined by the 32,000 global sales of the first generation.
There is simply nothing on the market – not the rice-burners from Japan, not even competition from within the family such as the VW Golf R32 – that comes close to fusing the levels of luxury, quality and slick performance as the S3.
Slide into the S3 and the splashes of silver around the air vents, door handles and gear lever are reminders this is quite different from the cooking class of A3s.
Audi's trademark interior style and quality build rolls out the red carpet.
Point-to-point the S3 is a stirring ride with crisp steering, impeccable handling and loads of grip from the quattro all-wheel-drive layout.
The steering is well weighted and it thankfully transforms from being light at low speeds to feeling heavier as you truck along the highway and plough through bends briskly.
This is a very slick hatch and for all its A to B prowess it remains quite liveable as a day-to-day drive as it somehow gives you a ride that is the perfect balance between cosy and hard.
And that is even taking into account for the low profile 18-inch wheels and the fact that the ride height is 25mm closer to the ground than an everyday A3.
Running stiffer springs and dampers, the S3 is vice tight with excellent body control.
It has "let me loose in a tarmac rally" written all over its windscreen.
There is a Japanese slant to the intercooled turbo with the wastegate nattering away as the driver lifts off the throttle.
The aural experience intensifies with the pace as the note becomes more pronounced from about 4000rpm.
This two-litre is blissfully flexibile with response on tap all the way through the rev band.
Even in the upper echelons and in sixth gear there remains urge on demand.
Specific power is an impressive 7.73kg per kilowatt as the reworked engine develops a total of 188kW with the 330Nm of torque running through the most important part of the range from 2500-5000rpm.
So it can take more load Audi has given the engine more strength with stronger pins for the pistons, new rings and reinforced connecting rods with new bearings that transmit the increased force to the crankshaft.
Given that this 5.9sec 0-100km/h S3 is no slouch it runs massive 17-inch brakes that bite big time.
There are black callipers all-round with the ones on the front gaining the S3 motif.
The S3 is easily identified on the road with with trademark S silver wing mirrors, a rear roof spoiler, front and rear aprons and diffuser and prominent sills and the S logo embedded inside the single-frame grille.
An improved range of colours are available now with the test car, a striking Sprint Blue pearl effect not a patch on an exclusive Solar Orange hue if you really want to be ostentatious.
The boot space is relatively tight at 281litres but the rear bench seat folds flat increasing the load area to a wagon-like 1011litres.
Dynamically the S3 should be an improvement over the first generation with an increase in wheelbase by 59mm to 2578mm.
Silk Nappa leather comes standard.
The multi-function flat bottom steering wheel comes as a $700 option as does metallic paint at $1300.
If you really want to lash out on the options list there are Audi Exclusive front buck seats for $6700 and the Navigation Plus pack including the glove box mounted CD changer is available for $5300.
On its own the CD changer in the glove compartment is a $950 option.
It is very much a select market this hot hatch and Audi says it will be happy with sales of around 100 per year.
http://www.news.com.au/couriermail/story/0,23739,22164960-5010760,00.html
