In a surprising turn of events, the sport compact market appears to be absolutely thriving in a way that almost makes it feel as though the year is 2002 rather than 2022. There’s a new Civic Si, a new Golf GTI, a new Subaru WRX, but there’s another player in the game that we shouldn’t be quick to discount. Volkswagen has updated its venerable Jetta GLI, and VW might just be on to something with its latest “GTI with a trunk,” claiming it to be the most dynamically rewarding GLI ever made.

A Familiar Powertrain

Powered by a two-liter turbocharged inline-four cylinder engine – Volkswagen’s iconic EA888 – the GLI produces 228 horsepower and a healthy 258 lb-ft of torque. That’s a 40% bump in power over the standard Jetta.

Don’t think the power bump comes at the expense of fuel economy, as the GLI returns an impressive 37 MPG on the freeway, and buyers can expect about 30 MPG, overall.

Paired with the EA888 is a standard 6-speed manual transmission, or an available 7-speed dual clutch automatic (DSG) for an extra $800. A helical limited-slip differential sends power to the front wheels.

The setup is sublime, offering ample power between 1,500 and 6,500 RPM. That flexibility not only makes the GLI a breeze to drive around town, but explains how it leaves the Honda Civic Si in the dust in a straight line. With the 6-speed, buyers can expect a 0-60 dash in just over six seconds, while opting for the quick-shifting DSG drops that figure into the fives.

While this is all happening, the GLI plays a varied melody, in part thanks to a revised exhaust system that not only features fatter exhaust tips – adding to the sporting flair – but also seems to utilize a different resonator after the catalytic converter. It’s never overwhelming – the more enthusiastic drivers in the crowd will want more – but it does have a nice subtle rumble.

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The other part of that sound equation comes from Volkswagen’s Soundaktor technology, which utilizes a speaker mounted on the firewall to create an enhanced version of the engine’s natural sound. It’s a little overkill when the GLI is in Sport Mode, but is easily turned off at the press of a button.

Sharp-eyed readers will note that the GLI makes due with a bit less power than the all-new MK8 GTI hatchback, which sports 241 horsepower and 273 lb-ft of torque. That may seem like a bit of a bummer at first glance, but because they use the same basic engine in a different state of tune, enterprising buyers can easily purchase an aftermarket ECU flash to more than make up the difference for just a couple hundred bucks.

The 2022 GLI Can Really Handle On A Winding Road

Unlike previous GLI models, this latest MK7 doesn’t just rely on a potent powertrain to get the job done. While standard Jetta models make due with a simpler, more cost-effective torsion beam rear suspension, the GLI benefits from a fully-independent multi-link rear end that frees up the handling, and ultimately produces a lot more grip.

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Also helping GLI’s adhesion is the standard helical limited-slip differential, which modulates power between the front wheels. Keep in mind that tucked behind those 18-inch wheels are larger brakes – 13.4-inch rotors up front and 11.8-inches out back – from the MK7 Golf R, meaning that the GLI has plenty of confidence-inspiring stopping power.

The biggest benefit of all comes from the standard dynamic chassis control adaptive damper technology. Based on the drive mode selector, the GLI’s shocks adjust between soft and comfortable and sporty and firm, with minimal body roll, all the way offering a great level of compliance over bumpy pavement.

All of this results in a car with a lot of grip in the corners, and offering a ton of driver confidence along the way. This is all the right sporting hardware to best rivals like the softer, underpowered Acura Integra or offer a great alternative to the new Subaru WRX with its symmetrical AWD system.

One Of The MK7 GLI's Strongest Suits Is Actually Inside

Because Volkswagen has dropped the base GLI trim, only the top level Autobahn trim remains. That brings the base MSRP up to $31,990 for 2022 – three grand richer than a Honda Civic Si – but the result is a well-content, Audi-like interior.

With heated and ventilated power leather seats, wireless phone charging, wireless Apple CarPlay and Android Auto connectivity along with the slick Digital Cockpit configurable driver display, the GLI feels notably more luxe than anything else in the segment, including its Volkswagen stablemate the GTI.

It may not look as slick, but the GLI has yet to receive the awful infotainment display used in the MK8 GTI, which relies entirely on a clunky capacitive touch system. Instead it uses the completely fine eight-inch display from previous VW models that uses a combination of conventional buttons, knobs and a touchscreen. This all makes for a much less fussy setup.

Unfortunately, for 2022 the GLI has received the updated VW steering wheel design, which uses some of those capacitive touch inputs, and is all the worse for it, but at least Volkswagen has spared everything else from this annoyance.

Related: These Are The Best Features Of The Volkswagen GTIBeyond that, the GLI earns brownie points for its spacious back seat – big enough for two six-plus-footers to sit comfortably – and capacious trunk. This is a well-rounded daily driver, just as happy to do the Costco run as it is tearing up a winding road.

Often overlooked for the GTI, the GLI sedan has evolved into an extremely competent option in the sport compact segment. It has the strong dynamics of the GTI, without some of the technological drawbacks, and compares very favorably against its rivals in almost all aspects, making it a surprise front-runner in the segment.