2004 Audi S4

A smallish car with a big motor is an intoxicating combination. That's how the first musclecars were brewed, and it's one of the philosophies behind Audi's newest S4. We liked the old S4 a lot, but it was short on rear-seat legroom and low-end torque. Based on the new-for-'02 A4 platform, the S4 addresses both issues. Out with the old 250-horse biturbo V-6, in with a 4.2-liter/344-horsepower V-8.

The '04 S4 is far more than just an engine swap: The S designation means the same to Audi as the M means to BMW: a balanced combination of performance, luxury, and appearance upgrades. Exterior giveaways include revised front/rear fascias, Xenon headlights, polished aluminum mirrors, and bladelike sill extensions. Larger disc brakes are visible through handsome 18-inch Avus alloys wearing 235/40ZR18 tires. The suspension gets a thorough tuneup, including revised springs, dampers, bushings, and anti-roll bars and a slightly lower ride height. Audi never forgets the interior, which receives upgraded leather, subtle metal trim, and superbly supportive Recaro seats.

Yet it's the protein-powder-slugging powertrain that snares us. This 4.2 is much the same as in the 450-horse S6, minus the turbos. Packing a solid 302 lb-ft of torque at 3500 rpm, it can be matched to your choice of a crisp-shifting six-speed manual transmission or a five-speed paddle-shifted Tiptronic. Also standard is quattro AWD.

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On road or track, this thing just flies. The engine snarls through its four-outlet exhausts, smooth right to its 7200-rpm redline. Unlike many small multivalve V-8s, there's no dearth of torque here. Audi has absolutely nailed the S4's ride/handling balance: lots of grip, minimal body roll, no dive or squat, and all with a ride that's supple and never punishes. The trans is a joy to work, the seats support, the brakes impress. Laps around a wet racetrack demonstrated the value of quattro; we found ourselves flinging the S4 through water-soaked corners at speeds that would have other machines spinning like a Frisbee. The S4 can handle anything an M3 or C32 can throw at it. And you can even get it in Avant sportwagon form.