Four years in the making, Volkswagen finally unveils the Golf R. Essentially, this is a GTI on steroids, containing a 2.5-liter turbocharged inline 4-cylinder, with 256 hp, 243 lb-ft of torque and all-wheel drive (AWD). Comparisons abound to the Audi TT RS, which is built on the same platform, but the R is aimed at a more sensible, frugal consumer that still wants something special; this model is limited to only 5,000 vehicles for the U.S. market.

But the thing that sets it apart from the others is the inclusion of its powerful 4th-generation Haldex 4Motion AWD. Also helping to eliminate the understeer common in the GTI is a powered rear axle. In keeping with its racy spirit, only a 6-speed manual transmission will be installed in U.S. models. As a hot hatch, the R is available in 3-door and 5-door iterations, and offers options for sunroof and navigation features.

With a slightly more aggressive stance than the GTI (15mm lower) and larger air intakes in front, the new model proudly plants its R badge on both the front and rear. Dual center exhaust tips add to its sporty looks. The 3-setting suspension won’t be available in the U.S., but it will also be tuned overall to emphasize sport.

The R's interior is in the vein of most VWs: easy on the eyes and strong on quality. All Rs come with cruise control, power windows, mirrors and locks, and keyless entry. An 8-speaker sound system comes with Bluetooth and an aux input. Trims with the sunroof and navigation have a premium touchscreen sound system, while base trims offer an old-fashioned CD/AM/FM. All your standard safety fare—airbags, antilock brakes, traction and stability control—are included at all levels.

In its debut run through the steep, icy, snowy roads of the Swiss Alps, the R impressed all drivers and onlookers with how it handled itself, especially on curves. Although it’s a solid performer, some still feel the GTI is a little more fun on the road. The R being at a higher price point might also be a barrier to acceptance from some consumers. But you could also look at it another way—the new R is a budget-minded TT RS.

Enthusiasts have been waiting many a year for this baby, and she looks sweet. The care and quality Volkswagen puts into its cars is readily apparent, and those looking for a solid, sporty hatch will not be disappointed.