Bringing back the old-generation Golf and selling it at a fire-sale price means one of two things, or maybe both. First, since Volkswagen currently has no subcompact ready for sale in North America, the company has got nothing to rival the recent surge of small-car offerings.

As old as it is, the City Golf can still provide decent transportation at a fairly low price.

At the same time, they might have figured that Canadians need or want basic transportation at a reasonable price, whatever the technology that's baked into the vehicle. VW seems to have a good strategy on both counts, since the German manufacturer is consistently selling as many City Golfs and City Jettas as Rabbits and Jettas.

The City Golf has a base price of $15,300, which is right in the middle of the subcompact price range. And if we would compare sales figures of this hatchback within the subcompact category, we'd realize that it would be fighting for 3rd place.

Archaic engine
Under the hood of the VW's City models, you'll find the old 8-valve, 2.0-liter 4-cylinder engine that develops 115 horsepower and 122 lb-ft of torque. While its 58 hp/litre output makes it among the weakest engines available to us Canadians, it's a hard-working one. A 6-speed automatic with manual mode is new since last year, and makes the engine quieter at highway speeds, but the row-it-yourself gate isn't very relevant with the 2.0-litre mill.

Our average of 10.5 L/100 km is nothing to get excited about, and definitely doesn't compare well with the subcompact gang. Zero to 100 km/h is ours in 10.4 seconds, and the quarter-mile mark is reached in 17.2 seconds at 128 km/h, which is unsurprisingly adequate.

Volkswagens have a reputation of being fun-to-drive cars, but that's partly true of the City Golf. Ten years ago, this car was one of the most involving hatches of its category, but today, almost every other manufacturer toned up the driving dynamics of their models. Still, the car remains nimble and the suspension does a good job of absorbing road imperfections.

Under the hood of the VW's City models, you'll find the old 8-valve, 2.0-liter 4-cylinder engine.

New styling
Last year, the City Golf and City Jetta got restyled front and rear ends, and in my humble opinion, VW did a better job with the hatchback than with the sedan. The Golf now looks more modern and fits in with the rest of the family.

Inside, the car gets a new sound system that includes a standard-issue USB port, a great feature for those who like to sift through a wide variety of music. The dash and door panels look pretty good for a 15-grand car, and the seats are covered in a sturdy fabric.

Rear-seat space isn't great, and adults who climb aboard would appreciate more legroom. The cargo area, at 330 litres, is small even by subcompact standards, and when the rear seatback is folded down, available space grows to 1,118 litres. We'll still a long way from the 1,622 L in the Fit and 1,427 L in the Versa.

Competition
This test car included a great deal of options, such as A/C, power windows, mirrors and locks, cruise control, alloy wheels, stability control, heated seats and side-curtain airbags, for a grand total of $20,360. We're now in the Rabbit's price range, but a similarly-equipped model costs about $3,000 more than the City Golf.

The City Golf has a base price of $15,300.

Just for fun, let's compare this car with some subcompacts and low-priced 5-door compacts with a similar level of equipment and an automatic:

Chevrolet Aveo5 LT with options, 106 hp, $18,825
Dodge Caliber SXT with options, 158 hp, $21,140
Honda Fit LX, 117 hp, $18,580
Kia Rio5 EX Sport, 110 hp, $19,445
Mazda3 Sport GX with options, 148 hp, $19,190
Nissan Versa 1.8 SL, 122 hp, $17,798
Pontiac G3 Wave SE with options, 106 hp, $18,825
Pontiac Vibe with options, 132 hp, $21,070
Suzuki SX4 JX Hatchback, 143 hp, $19,995
Toyota Matrix with options, 132 hp, $20,950

Conclusion
As old as it is, the City Golf can still provide decent transportation for a fairly low price. It cannot compete fair and square with the latest subcompacts, as they are mostly more spacious and more fuel-efficient. And despite being built in Brazil, it's the least-expensive European car on our market.

If you're interested in this car, it might be best to choose your options carefully, as the price of the City Golf will rise to levels that compete with better choices, such as the Mazda3 Sport, Pontiac Vibe, Saturn Astra and Toyota Matrix, not to mention the more-refined and sportier Rabbit.