The three German car companies are all planning to go downscale in the next year or so in an effort to grow their sales numbers, but Audi is the first to show exactly what it has in mind.

Parent company Volkswagen will launch a five-door version of the compact Audi A3 (which is taken from the VW Golf that isn't available in Canada yet) next May in North America.

We'll have to wait and see what BMW does with its 1 Series now that the United States has decided against importing it and how Mercedes-Benz does turning its new A-Class into a B-Class to suit North American tastes.

The A3 that will arrive in Canada and the United States is called the Sportback in Europe to differentiate it from the two-door hatchback. Audi has decided against using that name in North America because we're only getting the one body style.

According to Bernice Holman of VW Canada, the front-drive A3 2.0T should be in Audi stores next May, with a price of about $33,000 and either a six-speed manual or the Direct Shift Gearbox (DSG) automatic transmission.

In the spring of 2006, VW will add a 3.2 Quattro (Audi's term for all-wheel drive) model that will come with the automatic transmission.

Holman says the A3 is "aimed at active, young-at-heart, family-oriented customers who want a flexible vehicle, but not necessarily a SUV or wagon."

The first model to come to Canada will be powered by one of VW's FSI engines, which combines direct injection and a turbocharger for the first time in a production car. The 2-litre, inline-four engine delivers 200 horsepower from 5,100 to 6,000 rpm and 207 lb-ft of torque from 1,800 to 5,000 rpm.

VW says this engine, attached to the six-speed manual, should deliver 0 to 100 km/h launches in the seven-second range.

From the 3.2-litre V-6 engine, VW is able to create 250 hp at 6,300 rpm and 245 lb-ft of torque from 2,500 to 3,000 rpm, good for 0 to 100 km/h times of 6.4 seconds.

According to Jennifer Cortez of VW America in Detroit, the A3 has the "sporting elegance of a coupe and the versatility of a five-door vehicle."

A lot of the driving fun in the A3 will probably come from the DSG transmission, which VW calls a "pioneering form of power transmission inspired by motor racing technology" that allows "lightning fast gear changes with uninterrupted traction thanks to its electro-hydraulically controlled twin clutch."

Cortez says the DSG combines the advantages of a conventional six-speed manual gearbox with the qualities of a modern automatic transmission. The DSG is supposed to deliver good fuel economy and easy operation.

Along with its sporty nature, the Audi A3 is also supposed to provide a more pragmatic package than even the classic user-friendly three-door hatchback shape, mostly because it's bigger.

The A3's key dimensions include a length of 4,286 mm on a wheelbase of 2,578 mm, a width (minus the mirrors) of 1,765 mm and a height of 1,423 mm.

With the rear seat folded, there is 1,120 litres of enclosed space behind the front seats. Above the interior space is a glass sunroof Audi calls "open sky."

A dominant styling point of the A3 is the single-frame grille, which began life on the 12-cylinder A8 and the new A6, and is now the standard front piece of the brand.

Inside, the Audi A3 is said to be distinguished by two features -- sportiness and elegance. Cortez says this impression is "conveyed by the low seat position, in typical sports car style, the high and wide centre console, and the clear, generous subdivision of the dashboard."

Audi has always enjoyed a reputation for excellent interiors and Cortez says that is what people will find in the entry-level A3.

Drivers looking for that mystical European road feel will want to know the A3 has been given "a highly sophisticated suspension design," with MacPherson setup in the front and the innovative four-link independent in the back.

The Mac struts up front and the four-link independent setup in the back have been tuned, Audi says, "for sporty and agile handling offering a high standard of stability, and producing an excellent cornering performance and a high level of comfort in conjunction with both front-wheel and Quattro drive."

The Audi A3 is fitted with electromechanical steering with speed-dependent power assistance, which is said to combine optimum feedback from steering movements with a low level of sensitivity to vibration from the road, while also consuming far less energy than a conventional system.

The A3 will be fairly well-equipped, since it is, of course, an Audi and carries a certain luxury connotation even at this end of the price scale. Specific details and more precise pricing will be announced closer to the on-sale date next year.