For years Hyundai borrowed its engine designs from other manufacturers. It now develops and manufactures its own, and the Elantra's 2.0-liter inline four-cylinder has most of the latest technology, including dual overhead cams, four valves per cylinder, multipoint electronic fuel injection and coil-direct ignition. Major improvements for 2001 were intended to reduce mechanical noise and control vibration. They include a cast aluminum oil sump, a stiffer engine block and eight crankshaft counterweights.

With 140 horsepower and 133 pounds-feet of torque, there's more than enough power to hustle the 2600-pound Elantra GT through traffic, pass with confidence or drive through mountain passes faster than posted speeds. We estimate 0-60 mph times in the mid eight-second range-respectable performance in any subcompact.

But beware. There isn't much grunt at lower engine speeds. Most of Elantra's power comes in the last 2000 revs before the 6400-rpm redline. That means you'll need to work the engine and shift often to get the most from this power plant. Enthusiast drivers prefer to do exactly that. But if you're used to an engine with more low-end power, and you don't give Elantra its legs, you might wonder where the goods are. And when you find them, you might be disconcerted by the ruckus of a hard-working four-cylinder running near 6000 rpm.

We didn't try the Elantra with an automatic, but experience testing hundreds of automobiles suggests that a car with similar power characteristics is better suited to a manual transmission. Unless you hate shifting, or do most of your driving in heavy traffic, we'd recommend the manual.

What impressed us must was the Elantra GT's balance of ride and handling, which replicates the style of a good European sedan. Some cars that cost $25,000 don't have speed-sensitive steering or a sophisticated multi-link rear suspension. The power steering requires only a light touch during parking maneuvers or in tight quarters, yet it firms up at travel speeds and still gives the driver a good idea of how well the front tires are gripping. The rear suspension keeps the rear tires firmly on the pavement, even on bumpy roads, and helps keep the rear of the car from bouncing around.

The net result in the Elantra GT is maneuverability in traffic, secure, reasonably precise handling on curving two-lane highways and a ride that is neither floppy nor buckboard stiff. Only on freeways with excessively uneven expansion joints in rapid succession does the car tend to get bouncy. If you put a premium on handling, then the weak link in Elantra GT's package is the hard, wear-resistant all-season tires. A set of speed-rated performance tires would make this subcompact even better.

At the bottom line, Elantra is comfortable and enjoyable to drive. There's very little about it that seems cheap. The subcompacts from more established manufacturers might surpass it in certain respects. The doors on the Ford Focus, for example, thunk shut with more authority. Elantra is a bit noisier inside than a Toyota Corolla, but not by much, and if you're enjoying the Elantra GT's 100-watt CD player, you probably won't notice. The Honda Civic turns into corners with a bit more precision, but you probably won't notice that unless you plan to autocross.

In the workaday grind the Elantra GT is better than acceptable. It's good. It can run with comparably equipped competitors in nearly every respect except the size of the monthly payments.