Volkswagen Arteon vs BMW 320d

What's the difference?

The value, driving dynamics and appearance are on point for a premium play here. If you can forgo the badge snobbery attached to the German big three, then you'll find lots to like about Volkswagen's Arteon.

Despite BMW's wholehearted embrace of the SUV its 3 Series is still a critically important model for the brand in Australia. And this new version certainly has the spec and tech to take the fight up to Merc's C-Class. And if you're in the happy position of making that choice, it's now a whole lot harder. For our money the 330i marks the sweet spot with extra performance, safety tech and standard features for only a fraction more than $3k over the 320d entry-point.

It's really all about the looks here, and while the Shooting Brake is particularly handsome, the regular Arteon looks premium and polished, too.

VW tells us injecting a bit of sportiness was a key aim here, both inside and outside, and that's particularly true of the R-Line model, which rides on bigger 20-inch alloys, compared to the 19s on the Elegance, with their own bespoke design.

The body styling is more aggressive, too, but both trims get lashings of chrome along the body work, and a sleek, swept-back style that looks more premium than overtly sporty.

In the cabin, though, you can see that this is an important car to VW. The touchpoints are almost all soft to the touch, and it's both understated and tech-saturated at the same time, including the swipe-to-adjust function for the stereo and climate, with new touch-sensitive sections added to the centre console and steering wheel.

It feels, dare we say it, premium. Which is likely exactly what VW was going for...

At just over 4.7m nose-to-tail the new 3 Series has crept 76mm in overall length but that dimension is still more than 200mm shy of its next-size-up 5 Series sibling.

Changes to the exterior design are more evolutionary than revolutionary. You're never going to mistake this car for anything other than a BMW 3 Series.

But even if the face is familiar, aerodynamic efficiency is outstanding. BMW admits its claimed Cd of 0.23 was achieved with a base model running on 17-inch wheels (not offered here), but even if bigger rims knock a few fractions off that number it's still an amazing result for a conventional four door sedan.

Big contributors are a full width front spoiler, 'air curtains' managing flow around each corner of the nose, almost complete sealing of the largest areas underneath the car, and a functional rear diffuser section.

The signature kidney grille has grown and is delivered as a single piece, with active shutters incorporated to manage cooling air flow through to the engine. Twin adaptive LED headlights (standard on all models) feature a sharp notch on their lower edge, a big clue for new model spotters.

Broad, carefully managed surfaces characterise the bonnet and flanks of the car, with a distinct character line just above door handle height enhancing its confident stance.

The slightly smoked L-shaped LED tail-lights sit proud of the body, and 18-inch alloys are standard on the 320d, stepping up to 19s on the 330i.

The interior has been redesigned with revised controls and new materials, including slick 'aluminium teragon' finish on the console and dash in the M Sport.

As you can see in our interior images, it's been tidied up and simplified considerably, although it will still be instantly recognised by current BMW drivers.

Highlights are a 12.3-inch configurable digital 'Live Cockpit Professional' instrument display (lifted directly from the X5), a new 10.25-inch media touchscreen and a standard (larger) head-up display.

Interestingly, both body styles share near identical dimensions, with the Arteon stretching 4866mm in length, 1871 in width, and 1442mm in height (or 1447mm for the Shooting Brake).

Those numbers translate to a seriously spacious and practical cabin space, with an acreage of room for backseat riders. Sitting behind my own 175cm driving position, I had heaps of space between my knees and the seat in front, and even with the sloping roofline, plenty of headroom, too.

You'll find two cupholders in a pull-down divider that separates the back seat, and a bottle holder in each the four doors. Backseat riders also get their own air vents with temp controls, as well as USB connections, and phone or tablet pockets on the rear of each front seat.

Up front, the theme of space continues, with storage and cubbies sprinkled throughout the cabin, as well as USB-C connections for your phone or devices.

All that space means a sizeable boot area, too, with the Arteon serving up 563L with the rear seats in place, and 1557L with the back pews folded. The Shooting Brake ups those numbers - thought not any as much as you might think - to 565L and 1632L.

A longer wheelbase (+41mm) has helped increase overall cabin space and rear room specifically.

There's plenty of storage provided with a large lidded box between the front seats as well as two large size cupholders in a recessed section in front of the gear shift (which can be closed off with a roll-top style cover).

The glove box is large and there are big bins in the doors with separate holders for full-size bottles.

Rear legroom is generous. At 183cm, sitting behind my own driving position, there was plenty of fresh air between knees and seatback, with lots of foot room to boot.

Headroom was more marginal with a straight back leading to a bonce/roof interface. But there are adjustable rear vents, twin cupholders in a fold-down centre armrest, and big bottle holders in the doors. Multiple USB ports (Type A and Type C) and a 12-volt power outlet are provided front and rear.

The boot space offers up a 480-litre luggage capacity with a 40/20/40 split-folding rear seat increasing cargo flexibility. Local towing capacity is yet to be confirmed, but indicative (European) ratings for both models are 750kg for an unbraked trailer and 1600kg braked.

Standard rubber is run-flat so there's no spare of any description.

Pricing for the two-model launch line-up starts at just under $67,900 before on-road costs for the 320d, rising to $70,990 for the 330i.

That means it remains head-to-head with comparable Merc C-Class models, and other premium mid-size competitors like the Audi A4, Jaguar XE and Lexus IS.

Given many previous Australia-bound 3 Series models have been built in South Africa it's fair to ask where is the BMW 3 Series built, and the answer this time around is Germany.

And the standard features list is long, including 'Adaptive LED headlights' (with 'High-Beam Assistant'), LED fog lights and tail-lights, electrically adjustable and heated exterior mirrors (with electric fold-in function), rain-sensing wipers, three-zone climate control, electrically-adjustable sports front seats (with memory function for driver and front passenger), wireless smartphone charging, 'Aluminium Tetragon' interior trim finishers, 12.3-inch 'BMW Live Cockpit Professional' digital instrument display, 'Navigation System Professional' with 10.25-inch digital touchscreen display also managing a 10-speaker, 205-watt sound system, including a 20GB hard drive and DAB+ digital radio. Apple CarPlay is included.

Also included are 'BMW TeleServices' taking in 'ConnectedDrive'(free use of vehicle apps via 'BMW Online'), real-time traffic info and 'Concierge Services'. The 'BMW Intelligent Personal Assistant' responds to a "Hey BMW' voice command with a range of hands-free functions like nav, calls and texts. We had mixed success in challenging this friendly PA.

The default M Sport trim includes 18-inch 'M Double-spoke' light alloy wheels, BMW Individual high-gloss 'Shadow Line' black treatment on the window frame and air breather surround, the 'M Aerodynamics package' (aero front and rear bumper trims, and side sills), Alcantara/Sensatec (vinyl) upholstery (black with contrast blue stitching), Anthracite BMW Individual headliner, and an M leather steering wheel (with multifunction buttons).

The no-cost 'Luxury Line' treatment swaps in 'Vernasca' leather seats, ash grey-brown interior wood trim, a sport leather steering wheel, the instrument panel trimmed in Sensatec and standard level sport seats for the driver and front passenger.

Step up to the 330i and you can add 19-inch alloys, 'Vernasca' leather upholstery, 'Comfort Access' (keyless entry to all doors), adaptive suspension, M Sport brakes, 'Driving Assistant Professional' (active cruise control with 'Stop&Go' function, front and rear cross-traffic warning, steering and lane control assist, lane keeping assistant with side collision warning, crossroads warning and 'Evasion Aid'), and 'Parking Assistant Plus' ('Parking Assistant' with 'Active Park Distance Control' rear, 'Reversing Assistant', 'Surround View', 'Panorama View', and '3D View').

In terms of colours, 'Alpine White' and black are no-cost, wihle metallic shades - 'Black Saphire', 'Melbourne Red', 'Glacier Silver', 'Mineral White', 'Mineral Grey', 'Mediterranean Blue', 'Sunset Orange', 'Velmont Bronze' (brown), and 'Portimao Blue' add $2000 (rrp). And the 'BMW Individual' metallic shade of 'Dravit Grey' adds $2350. 

Lots and lots of fruit without any change to the price. Clearly BMW is determined to bring the 3 Series back to prominence.

There are two drivetrains on offer here — the 140TSI with front-wheel drive in the Elegance, or the 206TSI with all-wheel drive in the R-Line.

The former's 2.0-litre turbo-petrol produces 140kW and 320Nm, which is enough for a sprint to 100km/h in around 7.9 seconds.

But the lust-worthy engine tune is definitely the R-Line, in which the 2.0-litre turbo-petrol ups the grunt to 206kW and 400Nm, and drops the sprint time to a brisk 5.5 seconds.

Both pair with VW's seven-speed DSG automatic.

The 320d is powered by a 2.0-litre four-cylinder twin-turbo-diesel, featuring common-rail direct-injection and variable inlet timing. It produces 140kW at 4000rpm and 400Nm between 1750-2500rpm.

The turbo's multi-stage design incorporates a small, high-pressure, fixed-vane turbocharger as well as a larger, low-pressure, variable-vane turbo to maximise response, performance and efficiency.

A 2.0-litre single turbo-petrol four-cylinder engine sits under the 330i's bonnet incorporating direct-injection, as well as variable valve and cam timing. Peak outputs are 190kW from 5000-6500rpm and 400Nm between 1550-4400rpm.

Mark the date because this is the first time the BMW 3 Series has been offered in Australia without a manual gearbox option. Both launch models send drive to the rear wheels via an eight-speed automatic (with wheel-mounted shift paddles) only.

Volkswagen says the Arteon Elegance will need 6.2L per hundred kilometres on the combined cycle, and will emit 142g/km of C02. The R-Line needs 7.7L/100km on the same cycle, with emissions pegged at 177g/km.

The Arteon is fitted with a 66-litre tank, and a PPF or petrol particulate filter, which strips some of the nasties out of the vehicle's emissions. But, VW says, it's “very important" that you only fill your Arteon with premium feel (95RON for the Elegance, 98RON for the R-Line) or you risk shortening the life of the PPF.

Despite each car's performance potential claimed fuel economy for the combined (ADR 81/02 - urban, extra-urban) cycle is commendably low.

BMW says the 320d delivers excellent diesel fuel economy, consuming a miserly 4.5L/100km, emitting 119g/km of CO2 in the process, with the 330i's fuel consumption figure coming in at 6.4L/100km and 147g/km.

You'll need minimum 95 RON premium unleaded in the 330i, with both petrol and diesel requiring 59 litres to fill the tank to full capacity.

Full disclosure: we only spent time behind the wheel off the R-Line variant for this test, but even still, I feel pretty comfortable suggesting that it's the punchy powertrain you want.

Surely the very first hurdle any company hoping to play with the premium-brand big boys must clear is that of easy, effortless momentum? It's difficult to feel like you've made the premium choice when you're engine is straining and striving under acceleration, right?

And on this, the Arteon R-Line shines, with plenty of power underfoot whenever you need it, and a delivery style which means you rarely, if ever, fall into a hole waiting for the power to arrive.

For mine, the suspension might be a touch too firm for those seeking a truly wafting drive experience. For the record, it doesn't bother me — I always prefer to know what's happening underneath the tyres than be entirely removed from the experience — but a result of this sporty-feeling ride is the occasional registering of bigger bumps and road imperfections in the cabin.

The flip side of the firm(ish) ride is the ability for the Arteon - in R-Line guise - to swap personalities when you engage its sportier settings. Suddenly there's a snarl to the exhaust that's absent in its comfortable drive modes, and you're left with a vehicle that tempts you to head for a twisting back road to see what it's about.

But in the interests of science we instead headed for the freeway to put the Arteon's autonomous systems through their paces, with the brand promising Level 2 Autonomy on the highway.

While the technology still isn't perfect — some braking can occur when the vehicle's not entirely sure what's happening ahead of it — it's also pretty impressive, taking care of the steering, accelerating and braking for you, at least until you're reminded its time to put your hands back on the wheel.

It's also bloody big, the Arteon, with more space in the cabin - and especially the backseat - than you might be thinking. If you have kids, they'll be positively lost back there. But if you cart adults on the regular, then you'll hear no complaints.

First, the performance figures. BMW claims the 320d will accelerate from 0-100km/h in 6.8sec, which is agreeably quick, while the 330i knocks that down to 5.8sec, which is properly fast.

Both engines deliver the same 400Nm of maximum torque at low rpm; 1750-2500rpm for the 320d, and a broader 1550-4400rpm spread for the 330i. Mid-range acceleration is strong and satisfyingly linear in each, the 330i that bit more urgent at the top end.

The eight-speed auto is velvety smooth, with the wheel-mounted shift paddles on hand for rapid 'manual' changes. Engine noise is muted at low revs but nice and rorty under pressure.

A stated aim in the development of this 3 Series was "dynamic engagement", and the standard strut front, multi-link rear suspension has been tuned to reinforce the driving part of the brand's long-standing 'ultimate driving machine' promise.

The standard suspension includes tricky two-stage dampers front and rear, but with all cars at the local launch fitted with the optional active damper system we'll have to wait to report on its quality (or otherwise).

This car's centre-of-gravity is 10mm lower than the model it replaces, which may not sound like much, but in engineering terms, absolutely is. In concert with a perfect 50:50 front-to-rear weight distribution, and wider tracks front and rear, it helps deliver an overall planted feel and predictable cornering balance.

The electro-mechanically assisted steering is accurate and linear with good road feel, which is not always the case in recent Beamers.

The launch fleet was also rolling on 19-inch rims (standard on 330i, optional on 320d) shod with Bridgestone Turanza run-flat rubber (225/40f - 255/35r) and despite that type of tyre's reputation for harsh characteristics and a moderate level of road noise, ride comfort on the typically coarse rural roads we covered in the Victorian high country was impressive.

Braking on both models is by ventilated disc front and rear, and even in spirited cornering maintained their power and efficiency. The M Sport brake package fitted to the 330i dials things up with four-piston alloy calipers (sourced from Brembo) up front.

The standard sports steering wheel is fat and grippy, the sports front seats combine firm location with long-distance comfort and overall noise levels are low. Overall, this is a super-impressive touring car.

The new 3's active safety package is exactly where it needs to be, with all the 'cost-of-entry' items like ASC, DSC, ABS, 'Braking Assist', and traction control included. But additional tech includes everything from all-speed AEB, 'Lane Departure Warning', 'Lane Change Warning', head-up display and 'Front Collision Warning' (with brake intervention), to 'Cornering Brake Control', 'Rear Cross-Traffic Warning', 'Rear Collision Prevention', 'Speed Limit Information', 'Parking Assist' (with 'Reversing Assistant') and 'Dynamic Braking Lights'.

Step up to the 330i and you can add 'Steering and Lane Control Assist', 'Emergency Stop Assistant', 'Auto Speed Limit Assist', 'Lane Keeping Assist', 'Front Cross-Traffic Warning', 'Evasion Aid', 'Crossroads Warning' (with 'City Braking' function), 'Wrong Way Warning', as well as 'Parking Assistant Plus' (with 'Surround View Camera' and 'Remote 3D View').

On the passive side, the airbag count runs to eight (front and side airbags for driver and front passenger, and head airbags for all four outer seats). 'Intelligent Emergency Call' is also included.

There three top tether anchors for child seats/baby restraints across the back seat, with ISOFIX anchors on the two outer positions.

This seventh-generation 3 Series is yet to be assessed by ANCAP or EuroNCAP, but it's a safe bet it will pick up a maximum five-star safety rating.  

The Arteon is covered by VW's five-year, unlimited-kilometre warranty, and will require servicing every 12 months or 15,000kms. It will also get VW's capped price servicing offer.

BMW offers a three year/unlimited km warranty, which is drifting off the pace now with the majority of mainstream brands stepping up to five-year cover, with some at seven.

On the upside, bodywork is covered for 12 years, the paint for three, and 24-hour roadside assistance is complimentary for three years.

Servicing is condition based, so the car tells you when maintenance is required, and BMW offers a range of service packages in 'Basic' and 'Plus' grades up to 10 years/200,000km.