“We don’t want to add just another toy to the segment but a serious sports car that can be used every day,” Werner Frowein says about the Audi R8. He’s the managing director of Neckarsulm-based Quattro GmbH and is responsible for the development of Audi’s new mid-engined sports car. Frowein doesn’t want to create competition with the Lamborghini Gallardo. (VW owns both Audi and Lamborghini.) Accordingly, the interior of the R8 is not as breathtakingly aggressive as the exterior styling. The interior has design details shared with other Audis, for example, although the milled aluminum shift lever and the carbon-fiber trim in the cockpit are unique R8 pieces.

Thanks to a 104.3-inch-long wheelbase, the R8 passenger compartment has more leg-, shoulder-, and headroom than a Porsche 911 Carrera or Mercedes SL. The user-friendliness is highlighted by enough space behind the seats for two golf bags.

Continuing the civilized-sports-car theme, the engine is fired by turning a key rather than by pressing a race-car-style button. The 420-hp, 4.2-liter V-8 engine is smooth and quiet at low speeds, the steering is direct without being nervous, and wind noise is muted in everyday driving, although—as with most mid-engined sports cars— poor rear visibility makes parking a challenge.

The R8’s character changes at higher speeds on open roads, but it’s never raw, like a Porsche 911 GT3’s. Thanks to the modified air intake and exhaust system, the R8 engine delivers its maximum torque between 3500 and 7600 rpm, a higher figure than in the RS 4, which shares the same powerplant. At 5000 rpm, two valves in the intake manifold open and the engine note becomes more aggressive while the car surges forward impressively, despite a claimed curb weight of 3450 pounds.

The V-8 FSI engine sits 4.7 inches lower than in the RS 4, thanks to a dry-sump oil system. The engine is mated to a short-throw six-speed Graziano manual transmission. A hydraulic clutch system is optional, using paddles for manual shifting. Audi calls this R tronic, whereas Lamborghini names it e-gear in the Gallardo.

Like the Gallardo, the R8 has all-wheel drive. A minimum of 60 percent of the engine’s torque is delivered to the rear wheels. The upshot is safe, balanced handling: Initial understeer can be countered with the throttle, and it’s possible to break the tail loose if the driver is brave on corner exit. The R8 uses adaptive damping, as in the TT, and it’s precise and easy to drive fast, if a little bland. It’s also stable at speed, thanks to careful aerodynamic management—a rear spoiler deploys at speeds above 75 mph, and there’s a flat underbody.

Audi claims a top speed of 185 mph, which means the R8 is faster in a straight line than a 911 Carrera S. Yet it’s not as sporty as the Porsche and is likely to cost a lot more money in the U.S.—we estimate about $110,000. That’s still way cheaper than a Gallardo or Ferrari F430, its closest mid-engined rivals, and will make the R8 an alternative for prospective 911 Turbo and Aston V-8 Vantage buyers when it goes on sale in the fall of 2007 in the U.S.