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I don't get the competing with VW Golf comment either. Audi shipped the A3 hatch here, so they're competing against themselves? I think a 1-series hatch would compete with the A3. Although I understand that might be a small market, it's one I'm interested in and if I haven't already pulled the trigger on a new car I'll be looking at the next gen A3 when it arrives.
As gas prices go up I think people will be taking a harder look at hatches and wagons and wont default to SUVs (or SAVs or whatever silly name you want to come up with for an overweight overly tall car). Guess they will be shopping Audi/VW because BMW has abandoned that market.
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