After a fierce public lashing from outgoing VW Group boss Ferdinand Piech (who accused the brand of lacking direction and being stuck in adolescence), Audi has set course to become more of an outright sporting marque. Which turns up the pressure to engineer a first-rate chassis.

Good news, then, that the new A3 is the first in the VW Group to use the firm's all-new Golf-class chassis. Influenced by Ford's Focus, it dumps the plain old beam axle for a new 'four link' independent rear suspension. Audi also says it gets a 'refined' version of the McPherson strut front suspension. Conventional hydraulic power steering has been dropped for a speed-sensitive electro-mechanical arrangement.

It's grown, too. The old model was cramped but that's been cured with a substantial 65mm wheelbase stretch and 30mm more width. The height's been cut by 10mm, but as with the old A3, the driver sits unusually low, looking through a comparatively narrow screen - not unlike the TT's driving position. There's more TT influence in the facia design, which is beautifully made and finished, of course.

Outside, the design influence draws on the look of the outgoing S3, getting big wheels, substantial sills and deep bumpers. The old-school rear end is deeper with more coupe-like sloping rear pillars. At the front, however, there are hints of Audis to come with aggressively angled headlights, double-decker grille and slatted air intakes.

The one true evo engine, a 241bhp version of the 3.2-litre narrow-angle V6, complete with quattro transmission, won't be available in the UK until mid-year. Until then the most powerful engine is the FSI, a four-cylinder 2-litre direct-injection petrol unit, producing an insipid 150bhp. Despite Audi's claims, this is not a sporting car.

However, the new 2-litre 16v TDI turbodiesel looks more promising. Although 140bhp sounds lame, it has the same 236lb ft torque output as the V6. Quattro is also an option for the diesel and both it and the V6 get a six-speed manual box or the option of the excellent DSG automated twin-clutch gearbox. The FSI is front-drive only and has a five-speeder. There are also two chassis settings: standard (with 16in wheels) and Sport (17s). The latter is standard with both the Sport trim and the V6.

There's no doubt the new A3 is better than the outgoing model. On the road it's sweet and fluid - up to a point - and is much happier in fast sweeping bends where it's capable of building up hefty cornering forces while remaining relaxed. Perhaps too relaxed.

There's none of the edgy keenness you'd find, say, in a Focus ST170. Sure, the A3 feels much more expensive and upmarket. But it doesn't have great verve. Some of the blame must be pinned on the electro steering, which seems dormant for the crucial first eighth to quarter of a turn. The A3's nose is reluctant to move smartly away from the straight-ahead and needs a good tweak to encourage it to turn-in. Equally, when steering along a series of bends the car doesn't snap satisfyingly out of corners.

Audi's head of the A3 project team admits that the chassis has no passive rear-steer at all, but I'd argue that it's one of the best ways of livening-up front-drive cars with McPherson struts. Truth is, this car is too quietly competent and self-effacing to be truly sporting.

German roads are notoriously smooth and usually flatter an Audi chassis - partly because it's where much of the development work is done. As expected, the standard-issue A3 FSI rode extremely well. Surprising, then, that the Sport-trim TDI (which gets an 11mm lower chassis and stiffer bushings) was a little choppy and could patter quite markedly on what rough road surfaces we encountered. But otherwise it didn't feel much sharper.

While we're complaining, both of these engines were rather noisier than we'd expect in a brand new chassis. But brake feel is much improved, the gearshift is cleaner (if quite long-throw), and background refinement impressive.

Until we drive the V6 - on UK roads - it's hard to be definitive about the A3 except to say it looks great, is beautifully made and is in many ways a deeply desirable machine. But there's no doubt that a more punchy and powerful petrol engine will be needed to slot in between the flaccid FSI and warbling six-pot.