“SO, WHAT do you think of the R8?” asked newly minted Vw Group bossMartin winterkorn, fresh off the corporatejet from Germany for the first wave of pressdrives of Audi’s all-new mid-engine sportscar in Las Vegas. “It’s better than I thought itwould be,” I replied. winterkorn’s eyebrowsshot skyward in surprise. “what were youexpecting?”

Good question. the R8 takes Audi intoterritory it’s never been—somewherebetween Porsche and Ferrari. It’s a boldmove, and one not even bigger, moreexperienced rivals Mercedes-Benz andBMw have managed to achieve successfully.could Audi do it? And how?

At first glance, the R8 reveals the obviousanswers: dramatic design and hightechnology. the R8’s cab-forward stance,aggressive graphics, taut surfacing, andjewellike detailing are a thoroughlycontemporary take on the mid-engine sportscartheme that makes the Porsche 911 andFerrari’s F430 look old-fashioned. under theskin is an aluminum space frame, a 4.2-literV-8—that delivers 100 horsepower per literwithout supercharging—all-wheel drive, andsophisticated aerodynamics. But good looksand gadgetry are only part of the story.

This car is very much Martin winterkorn’sbaby. As Audi’s chairman, he greenlightedthe R8 for production back in 2002 and hastaken a close personal interest in its progresssince. the genesis for the most radical Audiin modern history came from Vw Group’sacquisition of Lamborghini in 1998, andAudi’s subsequent role as a technical andengineering resource for the storied Italiansupercar maker.

The R8 shares engineering dnA with theLamborghini Gallardo developed on Audi’swatch and launched in 2003. But up close andpersonal, it’s an altogether different car. Andit had to be. the target was not an impracticalweekend toy scented with the faint whiff oftestosterone and gasoline—epitomized bythe pugnacious Gallardo and the operaticF430—but a 24/7 supercar in the Porsche911 mode: a sports car fast and excitingenough to make every drive an adventure,yet practical and durable enough to driveevery day.

The R8 shares its basic layout, aluminumspace frame construction, and a number ofcomponents with the Gallardo. the controlarmfront suspension layout is basically thesame, but at the rear a new toe-control linkpromotes rear-wheel toe-in during hardcornering to improve stability. the R8 alsohas much more wheel travel than the Gallardoand is more softly sprung and damped. Frontto-rear weight distribution is identical at44/56 percent, and the variable torque splitof the quattro system funnels as little as 10percent and no more than 35 percent of thetraction action to the front wheels.

The R8’s wheelbase is 3.5 inches longerthan that of the Gallardo, and you feel thebenefit the moment you slide in behind theflat-bottomed steering wheel—the seats slidewaaaaay back, and there’s enough headroomfor an nBA player. this is a roomy interiorfor a mid-engine car, and the all-aroundvisibility is outstanding, too.

Twist the key, and the 420-horse V-8—fundamentally the same engine as usedin the Rs 4, though with a dry-sump to getit lower in the car and enable it to copebetter with high-g cornering—booms intolife behind your shoulder blades. It soundscammier, more mechanical than the Rs 4does, mainly because there’s less sounddeadeningaround it. Run the R8 through thegears, and the V-8 spins right to its 8250-rpmredline with a velveteen growl and an elasticsurge of thrust that’ll get you to 60 mph in atick over four seconds and to a claimed topspeed of 187 mph.

Two six-speed transmissions will beavailable for the R8, both shared with theGallardo. Local Audi execs predict 50 to 70percent of buyers will choose the automatedmanual (an updated version of the Lambo’se-gear system called R tronic) over the regularversion. If you’re smart, though, you’ll opt to bein the minority—although improved, R tronicis nowhere near as crisp and responsive asFerrari’s F1 automatic manual and nowherenear as smooth and refined as Vw Group’sown twin-clutch dsG (available only withtransverse-mounted engines for now).

The overwhelming first impression of theR8 is just how effortless it is to drive, which isprecisely what the development team set outto achieve, says winterkorn. the R8 feels morelike a fast and refined mid-engine Gt thanan edgy, adrenaline-charged road racer, withan easy user-friendliness that recalls—of allthings—the original Acura nsX. It’s the sort ofcar that’s just as relaxed crossing continentsat 150 mph as it is idling down to the localstarbucks for a sunday morning latte.

Final pricing has yet to be determined, butlocal Audi sources say the R8 will retail fromabout $110,000 to $120,000. that’s well belowthe $170,000-plus stickers commanded byGallardo and F430 and right in the heart ofwell-equipped Porsche 911 territory. this iscritical: Porsche has had the 24/7 supercarniche pretty much to itself for decades, andthe Audi R8 looks like the most seriouschallenger to the 911’s supremacy yet.But is it truly good enough? we’re about tofind out.