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I agree, Brookside, that this is an emerging market (luxury compact) and it would be interesting to see what the japanese manufacturers would do to response, perhaps in the same way Lexus has made a credible attempt to respond to the 3-series with the new IS.
I'm fairly moderate on engine output, so my hope would be that a 225i would come in at the B200 Turbo/A3 price point (about $35K, Canadian). Given that a 225i would offer about 215 bhp, I'd be less inclined to pay the extra for a 230i with the extra bhp.
It's also clear that the GTI and Mini Cooper S are lower cost alternatives, but given the obvious virtues of these cars (the 2007 MCS looks especially interesting with the revised interior and Turbo engine) the 2 will have to bring more...
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