Today, Audi of America announced pricing for the latest diesel variant to make its way from the other side of the pond.  The 2010 Audi A3 will slot in at just under $30,000.

With many assuming the major competition will be Lexus' HS250h, it seems that Audi has made the right move by pricing in well below the competition.   With an EPA estimated 30/42 city/highway MPG, the A3 makes the comparison versus a HS that much harder; considering an HS can achieve 35/34 city/highway. Oh, decisions, decisions.

Knowing this information, is the HS doomed?  Or, would you still consider taking one home? Weigh in, spies.

Full press release below:

Press Release

Audi sets pricing for 2010 MY A3 TDI® clean diesel

- Second U.S. clean diesel offering from Audi within a year
- EPA estimated highway 42 mpg offers unmatched efficiency in luxury car segment
- Luxurious features and amenities without compromise

HERNDON, Va., Sep 3, 2009  -  Audi today announced pricing for the 2010 A3 TDI, its second U.S. clean diesel offering launched this year. Expected to begin arriving at U.S. dealers in late November 2009, the 50-state certified A3 TDI delivers the highest highway fuel economy in the luxury car category – 42 mpg, according to U.S. Environmental Protection Agency estimates.

Manufacturers Suggested Retail Price (excluding $825 destination charge, taxes, title, options, and dealer charges):
A3 TDI clean diesel with S tronic front wheel drive $29,950

Audi launched its first TDI clean diesel model, the Q7 TDI, earlier this year. The Audi Q7 TDI built awareness with American luxury car consumers that modern clean diesel technology is markedly improved in emissions, quietness, ride comfort and overall performance. Both the A3 TDI and Q7 TDI clean diesel vehicles share several common attributes that include 50-state clean diesel technology, 30% better fuel economy and a 20% reduction in greenhouse gas than gasoline engines of comparable size.

In fact, the EPA calculated that if only one-third of the vehicles on American roads ran on clean diesel, the U.S. would use 1.5 million fewer barrels of oil each day. Audi was the first German car manufacturer to combine turbocharging with diesel engine technology in 1989, and has continued to evolve its technology ever since. Audi Sport has helped prepare the way for TDI clean diesel in the United States by racing the R10 TDI sports car from 2006-2008 in the American Le Mans Series and sweeping the major endurance races at the 12 Hours of Sebring (Sebring, Fla.) and the 10-hour Petit Le Mans (Atlanta, Ga.). In addition, the R10 TDI won all three 24 Hours of Le Mans endurance races in which it competed from 2006-2008. The R15 TDI continued the TDI clean diesel performance tradition by winning the 12 Hours of Sebring endurance race in March 2009.

The Audi A3 TDI offers the same sophistication, styling, operating efficiency and ride comfort that has distinguished Audi throughout its model range. Standard amenities include lighted vanity mirrors for drivers and front passengers within the sun visors, leather seating surfaces, cargo nets behind front seats, split folding 40/60 rear seats, rear seat arm rest with dual cup holders. Distinctive options include Audi Navigation plus with RDS traffic, Bluetooth® hands-free phone preparation, Audi music interface (integration for iPod® and related technology), BOSE® premium sound, the Titanium package with dark grey wheels and black grille, leather/alcantara seating, wood trim, rain/light sensors, auto-dimming exterior and interior rear-view mirror with integrated compass, and LED daytime running lights.

The pulling power of torque is the signature performance feature in all diesel models, and the A3 TDI clean diesel is no different. Offering 140 hp and 236 lb-ft of torque, this model performs briskly and efficiently with unmatched performance with its EPA-estimated 30/42 city/highway fuel efficiency.

The competitive set for the A3 TDI clean diesel is unique. Only one competitor is currently playing in the field of fuel-efficient compact luxury vehicles, but does not offer the driving experience or the 5-door flexibility that includes 40/60 split rear-folding seats. The Lexus HS 250h offers similar combined fuel economy with hybrid technology, but not superlative highway mileage range. The A3 TDI offers more superlatives in value, including a standard S line exterior sport appearance for 2010, a tighter steering turning circle, a top speed of 130 mph, as well as a 12-year limited warranty against corrosion.

The Audi approach toward efficiency is not only catered toward TDI clean diesel vehicles. Audi is also the first car company in the United States to equip 100% of its gasoline engines with FSI direct injection technology beginning with model year 2010. Audi began racing with FSI direct injection technology in 2000 at the 24 Hours of Le Mans and American Le Mans Series with the R8 FSI prototype racing sports car. Once this technology first became available for U.S. Audi customers in late 2004 with the introduction of the 2005 A6 3.2 FSI quattro, the list of Audi vehicles sold in the U.S. with FSI direct injection technology has continued to grow.


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sdcarguy - 9/3/2009 5:36:33 PM

+2 Boost

One thing I have learned here, say something nice about Audi and you get bashed.

So, the A3 is a luxury car?

quizz - 9/3/2009 5:54:06 PM

-1 Boost

I would definitely pick the A3 over the HS:
1. Funner to drive
2. Tighter handling
3. Better interior
4. Better after-market parts (the turbo chips are coming)
5. Better driving comfort
6. Better looking (HS looks like a Ford)

HS has some pros:
1. Lexus service (Audi service centers are spotty at best)
2. Likely larger interior
3. Resale value - the resale market loves Lexus


3.

Anthony - 9/3/2009 7:52:36 PM

+8 Boost

Why is this even being compared to the Lexus HS? Lexus is building the LF-ChaCha (or whatever) to compete with A3-sized cars. The HS is based off a mid-size sedan. The A3 is a compact.

enthusiastx11 - 9/3/2009 8:13:33 PM

-3 Boost

where did you drive it? and have you ever driven an audi?

quizz - 9/3/2009 10:10:14 PM

+4 Boost

I don't believe you can compare the HS to the A3 until you've driven both. The A3 was created specifically to handle like a fun pocket-rocket, which is a completely different target audience than the HS. If you are really measuring handling, the A3 will beat the HS hands down. Watch as the reviews come in, and I would doubt that the word "sporty" will be used to describe the HS.

Remember, Lexus doesn't necessarily want the HS to be sporty, but Audi DOES want the A3 to be sporty.

VISO - 9/4/2009 1:51:28 AM

-1 Boost

Poor delusional soul.

VISO - 9/4/2009 1:52:55 AM

-1 Boost

They are bringing the A4 TDI next year and it will beat the cheap rebadged Toyota Lexus.

rigid - 9/4/2009 8:00:41 AM

0 Boost

You expect an overweight battery laden pile of crap to handle like a subcompact with very little weight? Dude crack pipe down!

Agent00R - 9/4/2009 9:18:01 AM

0 Boost

Actually, the A3 TDI is slated to compete against the HSh because they are vying for the entry-level luxury alt. energy market...

XYZZ - 9/6/2009 5:59:30 PM

+1 Boost

not to mention, as the gross deficiencies of SOOT emitting diesels become more well known, NO green oriented person would even CONSIDER a diesel car!

latest science mags reveal that soot can contribute even more than CO2 to global warming. soot greatly SPEEDS UP melting of ice and snow.

and that's still not even considering all the cancer causing effects of diesel exhaust. look at cancer rates in port cities, other areas with heavy use of diesel fuel.

mobilian - 9/3/2009 11:42:25 PM

+1 Boost

You guys must have not driven a hybrid car before. If you want a fun to drive car, please don't drive a hybrid, you will be VERY disappointed. It is boring and not fun to drive. Comparing a hybrid with a tdi vehicle is like comparing an apple with an orange. The bottom line is, both vehicles are efficient and if you want fun to drive, it's definitely the tdi.

rigid - 9/4/2009 8:02:08 AM

+3 Boost

Why has nobody pointed out that you could just get the VW Golf TDI with leather interior and have the A3 for way less money?

Hachee2001 - 9/4/2009 9:47:23 AM

+3 Boost

As per usual, stupid autospies throw away lines meant to provoke - "is Lexus doomed?". Ridiculous, and while tempting to reply, it's pointless.

But one thing I noticed in the press release: they talk about superior highway range. Very true, but I think the point of these "small" luxury cars is for efficient local use - city and suburban driving. I'd bet that most drivers spending this much money on a small Audi or Lexus have other, larger cars that they'd likely use on a longer trip.

I wouldn't expect them to sell many of these Audis though. The price point of the Jetta diesel is right on the mark. Good as it may be, the Audi will be perceived as too expensive by most people, and will be bought by enthusiasts, just as the gas A3 is here.

tango - 9/4/2009 9:59:57 AM

+1 Boost

These cars wil appeal to different people with different needs. The operative word, NEEDS. The A3 (as with most diesels) is going to attract people that travel long distances, most of which will be at higher speeds. The HS250h will be used by people who have moderate to short distances to make, primarily at low to moderate speeds. Which would I buy? Well I actually trust Lexus more than I do Audi (quality/reliability) but I am a die-hard diesel fan. I also have little faith in hybrids because the batteries are going to be a serious problem after not too long. Decisions, decisions, decisions. More thought and research needed in this case...

investor27 - 9/4/2009 11:21:14 AM

0 Boost

Why should I buy the Audi A3 for $29,990 when the Jetta TDI with the exact same engine and DSG gearbox can be had for less than $19,000 (more than $10,000 cheaper)?

MSP6 - 9/4/2009 12:22:55 PM

+1 Boost

An equally loaded Jetta TDi with the DSG gearbox is $26000 MSRP + delivery

OK it's a 4k premium, but what's the Lexus premium on the ES, GX, LX and HS which are all rebadged models too ?

XYZZ - 9/6/2009 6:05:42 PM

0 Boost

the diff is, all "rebadged" lexuses are still based on high quality toyotas, which beat out even audi in reliability.

rebadged audis are based on VWs, which are close to the bottom of the heap with regard to quality of components and reliability.

i would pick a USED TOYOTA over a new vw or audi anyday. whether for economy, OR power (the toyota/lexus 3.5 v6 is one of the much underrated gems in modern engines. it's been picked to power the new Lotus Evora.)

XYZZ - 9/10/2009 2:08:16 AM

+1 Boost

one of the most underrated...

commander104 - 9/4/2009 4:36:38 PM

+1 Boost

tango is correct, i look at myself as someone with a lead foot and the tdi will give me the power w/o killing mileage.

XYZZ - 9/6/2009 6:07:17 PM

+1 Boost

LOL!