Audi are embroiled in a bit of a power struggle with its parent, Volkswagen, over where to build its cars outside Germany. The parental unit wants Audi to use the VW plant in the USA, whilst the boss of Audi, Rupert Stadler, fancies the idea of a new Audi plant in Mexico. You see, he believes that Audi needs a new launch pad to crack the US market for the Audi Q5 in particular. So is this sibling rivalry spilling over into the public domain? Is it because there is insufficient brand distinction between the VW group’s products?

In South Africa, we have just VW and Audi in this sector. But in other markets where you add VW’s other brands like Seat and Skoda to the mix, the problem becomes rather more pressing. I pondered this question whilst driving the shiny new black Audi A7, with it’s supercharged 3.0-litre TFSI V6. Driving all four wheels and producing 220 kW and 440 Nm of twist, this is Audi’s new micro-niche car. You’ve seen how the A4 fathered the A5 Sportback? Well, this is the car that the new Audi A6 fathered. Except the A7 Sportback has its own even more unique styling, sloping hatchback rear and broad shoulders similar to the A5 coupe. It’s a pretty car.

Think of this car as Audi’s answer to the new Mercedes CLS and to a lesser extent, BMW’s 5 Series GT. In most other markets, other than in the USA and possibly here, the petrol engine car I tested will account for just a small share of total A7 sales.

Although the A7 slots in neatly between the A6 and flagship A8 in price and range structure, underneath it’s based on the newly launched A6 platform. This is a big car. At 5 meters long and dragging 1 770 kg, it’ll still do 0 – 100 km/h in just 5.6 seconds. The electronic limiter will reign it in at 250 km/h. The throttle response is crisp and urgent and despite its size, the Audi corners very well, gripping tightly to your chosen line. The chassis is made from 20 per cent aluminium, which keeps weight down and improves handling. It seems to have an unshakable poise on winding roads. At slow speeds though, the steering is overly light, with a listless self-centering action, but it does increase the weighting and precision considerably as you ply on the speed.

It’s smooth, quiet and responsive at mid-range revs but becomes just a little frantic towards the red line. The gearbox works well, with fast changes and a long, top cruising ratio to keep things quiet and refined. To achieve all this, two electro-hydraulically controlled multi-plate clutches sit in an ‘oil bath’, also known by Audi as an ‘S tronic’ transmission.

Inside, there’s enough space to stretch your legs out and despite that sloping rear roofline, only those well over six foot will find the head room a bit of a squeeze in the back. The interior design has more than a passing resemblance to the fabulous A8, leaving the A7’s refinement and solidity is no doubt. The boot is a bit shallow, but is easy to access and does go back a long way, which means there’s plenty of space for long or awkwardly shaped items. The hatchback tailgate also means that this space is easy to access, and therefore more useable. There are plenty of stowage spaces inside. You can fold the rear seats down to increase capacity from 535- to 1 360-litres.

You’ll be happy to hear that the car scores very well on economy considering the size and performance. Curiously, the petrol version costs R11 000 more than the diesel version. The diesel returns an astonishing 6.0 L/100km and the petrol, a still impressive 8.2 L/100km. As a result, the diesel kills our planet far more slowly, producing only 158 g/km CO2 emissions versus the petrol cars 190 g/km. The 0 – 100 km/h race is just 0.7 of a second slower for the diesel, but the mid rage grunt is definitely better in the oil burning car. Now you can work out why most Audi A7’s worldwide will be specified as diesels.

But then, there is the price. There is no doubt the A7 is a seriously cool and desirable car, but starting from R728 000 you need to watch the options list carefully. One could easily get carried away, with the ‘Sophisticated Package’ costing R43 400, a ‘Progressive Package’ at R51 500, or a Bang & Olufsen Advanced Sound system (admittedly, a fabulous bit of noise) for just R77 000. Fortunately, you don’t have to pay extra for the standard MMI single interface operating system, which is more intuitive than BMW’s iDrive and whilst it minimizes a vast array of buttons, there are still loads of knobs and switches in the pleasant cabin.

Money-wise, for a lot less cash you could get much the same car in the shape of the A6. Then again, if you are in the market a five-door coupe-styled hatchback combining saloon prestige, coupe elegance and Avant functionality, you should consider this car. If you like the idea of a large executive car, but can’s quite see yourself behind the wheel of a large, heavy saloon then you should definitely have this car on your ‘compare and contrast’ list.

So does the Audi A7 mark a more distinctive brand strategy for Volkswagen group products? Will it help define Audi’s role within the VW Group line up? I believe it’s definitely part of the jigsaw of the brand’s ‘uniqueness’ and that niche cars like these may well lead the way to create more clearly defined brand values for VW group cars.

What we like…

• Audi build integrity
• Unique looks, plays the niche game well.
• Plenty of kit and it’s quick too.

What we would like….

• Smoother engine at high revs.
• More steering feel.
• A ‘giant killer’ RS7 diesel version.

Richard Webb is the publisher of Blower, South Africa’s longest running car magazine and contributor to SACarFan.