Providing luxurious transportation in a tidy package has become a lucrative business for many manufacturers. A wide range of choices are available, with a price spread equally broad. European offerings in this realm are generally more expensive, but have their own special appeal. Although Volvo threatens to break out of its conservative mold with its new replacements for the 850 line, the BMW 3-Series and Mercedes C-Class sedans are the major players.

Audi has long contended in this niche, but none of its past entries

have combined charm, style and value as desireably as the year-old A4.

And U.S. buyers have responded to this sleek small Audi, pushing the company's

sales up to levels it hasn't enjoyed for many years.

Like its German rivals, the A4 adds sporty flair to expected luxury

trimmings in an effort to appeal to driving enthusiasts. And for 1997 a

new model--the 1.8T--expands the A4's appeal even farther by combining

existing features and virtues with an innovative powerplant at a lower

price.

Few sedans can match the A4 for clean, distinctive styling. In profile,

it displays a definite but neatly rounded wedge shape, minimal front and

rear overhangs and large glass areas. Nose and tail are equally clean,

dominated by lighting and, in front, a large understated air inlet. You

won't see any extraneous trim; the designers have chosen to let a strong

basic form speak for itself. Although it's executed on a small scale, we

think this is arguably the most graceful design from Audi in decades, and

a strong rival to the BMW 318i and 328i in appearance.

From the outside, there is little to distinguish the 1.8T--the new low-price

version--from its more expensive (base price, including destination, $27,930)

2.8-liter V6 sibling. Each model has its own wheel design, but that's about

the only difference except for a single discreet badge in back. One small

change made to all 1997 A4s is a slightly reshaped trunk lid, designed

expressly to carry U.S.- and Canadian-size license plates. At present,

the A4 is available only as a four-door sedan, though an attractive wagon

version may arrive here in 1998.

Some people still consider the A4 a bit pricey for its class--those

who haven't taken a close look at the stickers on the competition, anyway--but

a few miles behind the wheel may change their minds. The A4's long suit

is refinement, mile-eating smoothness and sure-footedness that make it

a genuine pleasure to drive.

Price is the main appeal of the 1.8 Turbo. Use of a less-expensive four-cylinder

powerplant has enabled Audi to reduce the bottom line without depriving

the A4 of its important features. On paper, the new engine hardly seems

a candidate for a cost-cutting model. With its turbocharger and unusual

5-valve-per-cylinder configuration, the 1.8 looks to be more suitable for

a race car than a family sedan.

In some respects, that's true. Though torque is good at low engine speeds,

maximum power requires high rpm, something many U.S. drivers may find disconcerting

in daily use, although we had little trouble adapting. The small powerplant

is rougher and nosier than the existing V6 as well.

That said, the 1.8 is still a nice alternative for buyers on a budget

and those who like small, high-revving engines. It delivers good performance

and fuel economy, and quiets down considerably at cruising speeds. For

maximum refinement, it is best teamed with the optional automatic transmission,

though some performance is lost in this configuration.

Nevertheless, we think most buyers will find the V6-powered 2.8 more

to their liking. It is commendably quiet in most driving situations and

delivers good fuel economy. In typical European fashion, power delivery

is biased toward sustained high speed rather than neck-snapping stoplight

performance; even so, the 0-to-60 mph sprint takes only eight seconds or

so, which isn't bad.

A five-speed manual transmission is standard equipment. While not possessed

of the crispest shift linkage around, it shifts well and has gear ratios

well-suited to the engine's power delivery. The optional automatic saps

a little performance (adding about a half-second to 60 mph) but is otherwise

an excellent alternative. Even buyers who usually choose manual gearboxes

will want to check this automatic out; electronic controls adjust shift

modes to suit driving conditions,

Driving pleasure in the European manner is another A4 plus. There's

minimal body roll during cornering, and crisp variable-assist steering

to keep the driver in contact with what the wheels are doing. Quattro models

raise the enjoyment level a notch, increasing traction in situations where

it's most needed, whether during brisk driving or careful motoring down

a snowy lane. Despite the firm springs and shock absorbers, the A4 delivers

a smooth ride. Rough pavement doesn't faze it; nor do highway expansion

strips or small potholes.

In the face of formidable opposition, the small Audis continue to impress

us. They are well-equipped, carefully-assembled cars that combine style,

fine road manners, comfort and reasonable--if not exciting--performance

in a reasonably priced package. If they're not the best buys in their class,

either A4 certainly comes close.