ON PAPER THE

revamped Saab 9-3 Sport sedan makes a lot of sense for today's driving. It sits squarely in the hot "near luxury" category. Its turbocharged four-cylinder engine is intended to provide a power surge when youneed it, instead of draining your gas tank like a kid inhaling a milkshake. And the car's new stylingaims for, as the company puts it, a "modern expression of the brand's distinctive character."

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But there's "on paper" and then there's reality: Last year 32,700 Saabs were sold in the U.S. That's 10 percent of the sales posted by competitor Lexus and 11 percent of BMW's. With numbers like that, Saab's corporate parent, General Motors itself grappling with record losses must decide whether to reinvigorate the venerable Swedish brand or let it fade away. Let's just say the redesigned Saab 9-3 could use a little more vigor.

When we took the new 9-3 out between the stripes, its driving manners seemed more tame than turbocharged. Sure, it shows more agility than the tanklike Saabs of yesteryear, but it doesn't feel as lithe or responsive as an Audi A4 or the Lexus IS cars. And it lacks the taut ride and crisp handling that define BMW's performance; indeed, the 9-3 would benefit from more-precise steering. Gas mileage, too, is just average for cars in this class. The front-wheel-drive base 2.0T (for turbo), with 210 horsepower, burns through a decent but unimpressive 19 miles a gallon in the city and 29 on the highway with a standard six-speed manual transmission.

Then there's the lackluster look. Saabs have always whispered, "I'm understated but a little quirky," and few in the current crop of near-luxury sedans can claim distinctive styling. But just try finding your 9-3 in a parking garage filled withother silver sport sedans; it's tough. Whereas the BMW 3-series and the Infiniti G37 both sport distinctive exterior "crease" lines that make them appear poised for action, there's no design distinction here and not a trace of Saab's familial eccentricities, outside or in. That is, unless you count the cupholder that pops balletically out of the dashboard. While it may epitomize minimalist Scandinavian design, it's downright shaky with some drinks just one example ofhow the 9-3's interior feels subpar. Others include the cheap-feeling plastic instrument panel and less-than-supportive seats signs, it appears, that General Motors is carefully rationing its investment in the brand. For its part, Saab says it's "following a design strategy of 'less is more.'"

Saab 9-3 2.0T Sport Sedan

Base Price:

$28,825 (incl. destination charge)

MPG:

19 city, 29 highway

Standard Features:

2.0-liter four-cylinder turbocharged 210-hp engine, six-speed automatic transmission, traction control, electronic stability control, antilock brakes, leather seats, OnStar.

Now for the silver lining. GM has well positioned the 9-3 pricewise, even before the buyer incentives of $1,000 or so on 2008 models. The base price for the 2.0T is $28,825, $850 less than the Audi A4 and a hefty $4,350 less than the BMW 328i. (All prices include destination charges.) The 9-3 does come in more robust versions: two more sedans, three models dubbed the SportCombi (which must be Swedish for "station wagon") and two convertibles. At the highest end the 2.8-liter V-6 turbo ragtop starts at $46,385, climbing close to the price of a BMW 335i ($49,875), without the Bimmer's more powerful engine, higher-quality interior and more upscale image.

Earlier this year Saab unveiled its 9-4X BioPower concept vehicle, an all-wheel-drive, four-cylinder turbocharged crossover that runs on E85 ethanol fuel, which GM will launch in about 18 months. GM had better hope that it turbocharges this flagging brand.