Key Points: • 2.0-liter, turbocharged four-cylinder with direct fuel injection
• 200 horsepower between 5,100 and 6,000 rpm
• 207 lb.-ft. torque between 1,800 and 5,000 rpm
• Six-speed manual or Direct Shift Gearbox
• Front-wheel drive

Audi says that its new 2.0-liter turbocharged engine is the first force-fed motor equipped with gasoline direct injection technology. Audi calls it FSI and says it helps blend good gas mileage with a free-revving response from the engine. All you’ll care about is that the 2006 Audi A3 2.0T loves to rev, charges hard, and returns an average of 24.2 mpg in the process.

Of course, to benefit from the 2.0T’s maximum potential, you’ll need to run it on premium fuel for optimum performance, but the engine will digest regular if you’re pinching pennies. On premium the engine outputs 200 horsepower and 207 lb.-ft. of torque to the front wheels, and that torque is available all the way from 1,800 to 5,000 rpm, making for an extremely responsive automobile. The standard transmission is a six-speed manual, but if you believe Audi’s acceleration data, the Direct Shift Gearbox (DSG) is the way to go. With the manual, the A3 scoots to 60 mph in 6.9 seconds, while paddle-shifting the DSG drops the trap time to 6.7 seconds.

DSG produces faster acceleration because it employs twin electrohydraulic clutches to deliver lighting quick manual gear changes without requiring the driver’s left foot to operate a clutch pedal. Shifting is handled by toggling the gear selector between the seats, or smacking the paddles mounted to the steering wheel. If you don’t feel like selecting gears, DSG can operate as a traditional automatic transmission. You can even choose between normal and sport modes.

Audi’s DSG is best of its breed (which includes BMW’s Sequential Manual Gearbox), but in sport mode it produces too much engine braking and in regular mode it results in an irritating delay off the line. Shift for yourself using the paddles, but beware that because they’re fixed at the 9:30 and 2:30 positions it’s hard to swap cogs in the middle of a turn if you tend toward shuffle steering. We found it natural, and most preferable, to use the gear selector to change gears. Another demerit against the DSG is the delay when shifting between park, reverse, and drive. Making a three-point turn, the transmission took its sweet time switching gears, so make sure you’ve got plenty of clear roadway to work with.

Hammer the 2006 Audi A3 down your favorite stretch of twisties, and you’ll find the powertrain an absolute delight, responsive and producing plenty of oomph. With DSG’s rev-matching feature, the exhaust emits a funny sounding, flatulent burble between gears, but it adds rather than detracts from the drive. We even pulled off that 24.2-mpg average over the course of a week, without trying to hoard our A3’s precious fuel.