The Rabbit comes with the intention of providing a German designed, German engineered and German built alternative to the Asian-nameplate vehicles that dominate the entry level of the American automotive marketplace, namely the Honda Civic, Toyota Corolla, Nissan Sentra, and Hyundai Elantra.

Unlike many of its competitors, whether Asian or domestic, the Rabbit is a hatchback and therefore offers the advantage of cargo-carrying utility not provided by the typical two- or four-door sedan design. Hatchbacks are becoming popular again. Dodge, for example, has abandoned its traditional Neon sedan in favor of a new entry-level five-door hatchback called the Caliber.

The Rabbit offers only one engine, but it has been tuned for American-style driving. Volkswagen's 2.5-liter inline five-cylinder offers the sort of torque that Americans want for off-the-line acceleration and for merging into freeway traffic. Though no rocket, we found the Rabbit to be quick, responsive and fun to drive. Its four-wheel independent suspension and relatively long wheelbase give it a nice ride along with good stability and handling.

This responsive engine is available with a six-speed automatic transmission that only adds to its flexibility and responsiveness, making the Rabbit a good choice for commuting in heavy traffic. The Rabbit also gets excellent fuel economy, whether equipped with the five-speed manual or six-speed automatic. The automatic has a Tiptronic manual-shifting feature, giving the driver the option of semi-manual shifting when desired.

The Rabbit comes in what Volkswagen calls two- and four-door models, though some would call it them three-door and five-door hatchbacks. The full, roof-hinged rear hatch door provide good access to the cargo area, making the Rabbit a practical car. It's roomy and trimmed nicely, making it a comfortable, pleasant place to be. It also comes standard with safety features such as side-curtain airbags and anti-lock brakes that are optional on many cars in this class, making it a relatively car for this class.