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There are two new Volkswagen hatchbacks—one VW hopes you buy, and one you can’t. The one up for discussion here is the new R32, which is, to sum up in advance, a good one, and it will be available in U.S. showrooms at the end of August.

The other one can be termed fantastic or ridiculous, take your pick.

This is the GTI W12 650, and it is a one-off equipped with a 641-horsepower version of the W-12 engine seen in Bentleys and the Audi A8L (as well as the Euro-market VW Phaeton). It is rear-wheel drive only, as opposed to the all-wheel drive standard on the R32, and there is no back seat, as that is where the engine sits. The manufacturer gives a 0-62-mile-per-hour time of 3.7 seconds, and a top speed of 202 mph. Volkswagen spokesmen are firm in their denial of any production plans.

(Try taking this one to your insurance man: “You have a what?”)

So much for fantasy, even if one is there in real life. The 2008 R32 may not approach 200 mph, but in the short time one was made available to us, it reached an indicated 130 mph on the Berlin-Magdeburg autobahn—with some throttle travel remaining—and cruised at 110 with little effort. The American version is limited to 130, as are all other VWs headed for the U.S. The model run is set at 5000, and in late June VW announced that more than 1000 have already been ordered by current owners.

The R32 is the gentleman’s hot rod version of the standard GTI; it has the 3.2-liter, 250-horsepower 15-degree V-6 found in other VW products, and starts at $32,990. The “normal” 2.0-liter 200-horsepower turbo GTI Mk V, which comes with a six-speed manual, will have a base price of $22,730 for the 2008 two-door model (a four-door is also available), and you can add about $3000 to that for various options that make life more pleasant.

The newest R32—it was last produced as a 2004 model—comes with the company’s highly regarded six-speed DSG transmission that allows for full automatic use or use as an automated manual shift, which can be operated either by using the shift lever or the paddles mounted right under the steering wheel. It also has EBD, or electronic brake-pressure distribution, which varies the amount of force applied to each brake based on road and driving conditions, an ESP vehicle stabilization program, and ABS. It can best be recognized by the brushed aluminum grille, and comes in four colors—blue, red, white, and gray. It has various and sundry standard amenities such as air, leather-wrapped steering wheel, a vestigial back seat, stereo, rain-sensing wipers, heated front seats, cruise control, and the like. It accelerates reasonably quickly (0-60 in 6.4 seconds), handles well, and stops well. Looks are a matter of personal taste. This corner liked it.

The first of the GTI series, which will mark its thirtieth anniversary next year, is considered by some to be the original pocket rocket, but there are others with more legitimate claims to this distinction. The Fiat-Abarths of the mid-Fifties terrorized many a large-displacement car, as did the (original) Mini Coopers of the early Sixties, and you can also throw in the Lotus Cortinas of the mid-Sixties. Small cars with performance engines are nothing new.

Volkswagen calls the R32, “a race car for everyday driving,” which is a stretch. There are at least three competitors that may be thought of as co-considerations and have more horsepower: the Subaru WRX STI, Mitsubishi Lancer Evolution, and Mazdaspeed3. The Subaru and Mitsubishi cost about the same, but the Mazda, depending on what optional equipment you order, can save you more than $6000.

The R32’s pluses are its behavior and overall solidity. But in the end, it raises more questions than it answers. With Volkswagen’s sister division, Audi, producing one high-horsepower model after another, VW is oddly lacking in this area. What the R32 needs, to give it and the brand a little more sex appeal, is the 3.6-liter engine available in other VW models.

Or will there be an R36 as a 2009 model?

Magazine Issue: Winding Road Issue 24