New cloth covers the firm seats that are comfortable nonetheless, and there's even a center armrest, something I wished for in the City Golf I reviewed last spring. What's lacking most inside this VW, however, is rear-seat legroom.

The old 2-liter does not offer exhilarating performances.

Not very sporty
I knew what to expect about the old 2.0-liter engine which generates a modest 115 horsepower and 122 lb-ft. However, that torque peak happens at just 2,600 rpm, so off-the-line acceleration is respectable; 100 km/h comes up in 10.5 seconds. The 8-valve engine's noise is nothing to get excited about.

What I didn't expect was the relatively soft suspension. Turn a street corner and you'll notice some body roll that you wouldn't normally expect from a VW; the car also dives and squats a little while accelerating and braking. But oddly, the ride is still firm.

Overall, the City Jetta drives well and performs in an acceptable manner. I'm averaging 10.8 L/100 km over the course of the week. Another change for 2008 is the optional 6-speed Tiptronic automatic, which replaces the old 4-speed. My car has the 5-speed manual gearbox, which works well, although I'm not a fan of the hollow-feel-spring-loaded-to-engage-reverse shifter.

Overall, the City Jetta is an honest product.

Competition
Base price is $16,900, up $200 from the 2007 model. My test car also carries a few options: the $975 comfort package, the $275 cold weather package (which I strongly recommend for the price) and $1,350 air conditioning, for a total of $19,500. Is that a good deal for a fairly well-equipped compact sedan?