This hotly contested segment has its benchmark in the Lexus ES 300. It blends comfort, style, luxury, and sport into an efficient package at an affordable price. ES 300 manages to offer a little more luxury than others in the class.

We Recommend the Acura TL, Audi A4, and new Infiniti G35. All offer comfort, speed, and nimble handling at attractive prices. The sporty and Euro-flavored BMW 3-Series is Recommended as a rear-drive alternative. The "3" has enough bodystyles and engine choices to suit anyone. At the other end of the near-luxury spectrum is the posh and comfortable Buick Park Avenue--an old-school luxo-cruiser from Detroit.

The A4 scored a second straight year-to-year sales gain in 2002, up a stout 24 percent after 2001's modest 3.7-percent increase. The imminent S4 sedan and wagon complete this line's design overhaul, at least for now. These early 2004 models pack a 340-bhp version of Audi's 4.2-liter V8 instead of the previous S4s' 250-hp twin-turbo 2.7 V6. A 6-speed manual transmission remains standard, but a 6-speed automatic with manual shift gate is newly optional. Other technical upgrades include bigger brakes, quicker steering, 18-inch wheels, high-speed tires, and a lowered suspension with more lightweight aluminum components and uprated springs, shock absorbers and anti-roll bars. Visual differences from lesser A4s involve a modified grille, aluminum-clad door mirrors, modest rear spoiler, and dual exhaust outlets, plus bi-xenon headlamps. Interior changes include special gauges and trim, Nappa leather upholstery, and 12-way Recaro-brand power sport front seats. Pricing isn't available yet, but Audi says the S4 sedan will start in the mid-$40,000 area. Based on Audi statements and European road tests, expect strong 0-60 mph performance of around 5.5 sec.

Meantime, European sources say Audi is moving ahead with a first-ever A4 coupe based on the new Cabriolet. Expect 1.8T, V6, and maybe S4 versions. No firm word on timing, but a mid-2004 introduction seems likely. After that, the A4 line should see mostly detail yearly changes until the next redesign, which reportedly happens around 2007.

In Europe and other overseas markets, Audi sells a smaller-than-A4 hatchback called A3. Audi recently confirmed that a redesigned A3 is coming to the U.S. about a year after a new-generation VW Golf/Jetta debut on the same basic platform. Details are unclear, but the U.S. A3 should be an '06 model with four doors and choice of 4-cyl 1.8T and VW 3.2-liter VR6 engines. The top-line version, to be called RS, reportedly boasts a 350-hp twin-turbo V6 and Audi's quattro all-wheel drive. As Audi's new entry-level models, A3s will cost less than comparable A4s, though we don't yet know how much less.