Despite reviving the Rabbit nameplate, Volkswagen's new compact is nothing more than the latest step in the evolution of the highly-successful Golf. Of course, the latter is still available in Canada as the City Golf, a more attractive entry-level model for budget-minded buyers. Still, the Rabbit now stands as the official compact in the VW lineup.

The old Golf and the new Rabbit are quite similar in terms of styling.

The old Golf and the new Rabbit are quite similar in terms of styling. The transformation from the former to the latter has been wisely thought out. Traditional Volkswagen design cues are all present, except for the chrome grille which is exclusive to the Jetta sedan. In fact, the front half of the Rabbit and Jetta is nearly identical, including the interior. Overall, the car displays an understated yet well-executed look that will no doubt last through time. Moreover, I have no case to make against the exterior build quality.

Inside, attention to detail as well as quality fit and finish make this German hatchback very appealing. As in recent years, the blue backlighting makes the instrument panel extremely easy to read. The equipment level is commendable, with all the bells and whistles you would expect from a compact car. Though not exemplary, ergonomics are straightforward and purposeful.

I have to congratulate VW for the Rabbit's premium sound system (optional), which is way better than anything else from the competition. It features a 6-CD changer and MP3 playback. Plus, designers managed to incorporate 10 speakers, which is impressive given the size of the car.

Inside, attention to detail as well as quality fit and finish make this German hatchback very appealing.