2010 Volkswagen Golf TDI Two-Door

Volkswagen actually re-christened the car "Rabbit" from 2006-'09, evoking the original U.S.-market Rabbit hatchback of a few decades ago, but for 2010 the Golf is back -- and if you'll forgive the cliché, it's better than ever. Perhaps the biggest news is under the hood, where the carryover 2.5-liter five-cylinder engine is joined by the excellent "TDI" turbodiesel four-cylinder from the Jetta sedan. Paired with one of two six-speed manuals -- a conventional unit or a dual-clutch automated version (DSG) -- the TDI delivers a punchy 236 pound-feet of torque and an estimated 34 mpg in mixed driving. The sixth-generation Golf also features a redesigned interior with even nicer materials than before, along with subtly altered sheet metal that clearly conveys the car's sophisticated character.

Underneath, the two- or four-door Golf shares its 101.5-inch wheelbase and basic suspension layout with the previous-generation car, but that's fine with us. The Rabbit already had some of the most sophisticated driving dynamics of any compact car, thanks to a stiff body structure, a multilink rear suspension and autobahn-bred confidence on the highway. The Golf TDI enjoys an edge in this department thanks to its standard sport suspension, which improves the base Golf's rather soft stateside tuning. Inside, the TDI also offers a few exclusive optional luxuries, including xenon headlamps, a Dynaudio sound system and a navigation system.

The Golf's principal competitor is the Mazda 3, the only other compact car that offers comparable performance, four doors and a hatchback body style. This race is too close to call -- the Mazda has more responsive handling and a nice interior in its own right, but the Golf counters with its excellent diesel option and superior solidity and refinement. Also of note are the Mini Cooper and its Clubman variant, both stout rivals to the two-door Golf. Other compact sedans may merit consideration due to the Golf's steep price, particularly in TDI trim. But like the sport, the 2010 Volkswagen Golf offers a unique array of virtues that justify its added expense.