That price is causing controversy. Not for how cheap it is, but how expensive. The CC starts at just $26,790 when equipped with a 2.0-liter turbo four and a six-speed manual. But the Passat, which the CC is based on, comes in at just $23,990. So to some, the CC is asking you to pay more for less; it only has four seats to the Passat’s five.

The thing about the CC is that it doesn’t deserve to be compared to the Passat, but instead to vehicles that cost much much more. Why? It offers a driving experience that’s at least equivalent to most entry- to mid-size luxury cars (there’s those damn categories again), classier looks, a larger interior, greater economy and doesn’t suffer from the image problems of it’s snobbier rivals.

The European luxury driving experience has come to be defined by two characteristics: sporting ability combined with cosseting quality. The driver of a BMW, Audi or Mercedes expects to be able to drive quickly everywhere from the highway to a winding mountain road, but doesn’t want to pay a comfort penalty for that ability. They want supportive seats, isolation from external noise and a comfortable ride. Recently, much of the involvement that always came hand-in-hand with speed has been sacrificed in the drive to make cars ever more capable and safer. The CC is no different. It’s as competent as an Audi A4, which is to say more fun than any Mercedes, but a little less involving than a BMW. One area where it distinguishes itself is in ride quality, which manages near total isolation without compromising handling ability.

The interior, too, leaves you thinking more high-end than entry-level. The fit and finish is top notch. Every button and lever is well-damped. Attractive accent lighting makes things look nice at night. Everything is as it seems; the chrome is actual chromed metal, the brushed aluminum actual aluminum and not a cheap plastic imitation. Wood is, thankfully, totally absent. The two-tone black and beige seen here is the most successful interior color scheme, accentuating both the attractive shape of the dash and the seats which, in the rear, are the CC’s defining characteristic. There are two supportive buckets separated by a console. That arrangement means that sitting in back is as appealing as sitting up front, but it also means the car sacrifices the ability to carry five people. The sloping roof, a characteristic of these four-door coupes, does impinge a bit on headroom, but I’m 6’2” and could sit back there all day without an issue.

So we’ve covered what the CC does as well as its more expensive alternatives; now let’s talk about what it does better. For one, when equipped with that base engine (there’s also a 3.6-liter V6 with 280 HP) it’s capable of returning 31 MPG on the highway while still managing the 0-to-60 sprint in 6.7 seconds. That back seat? Not only does it have more space than the A4 (or 3-series or C-class) that it drives like — I could cross my legs — but it has more headroom than a CLS, in which the ceiling flattens my beautiful hair.

Then there’s the looks. While not as striking as the Audi A4 or A5, the CC is a hell of a lot less awkward than the CLS or any current BMW. It’s understated — there’s not even a CC badge —and handsome, but utterly unassuming. People don’t know what to make of it. One on hand, there’s the VW badge, which means it’s a cheap car, but on the other its shape is well proportioned and evokes quality. It looks expensive.

Probably the best thing about the CC isn’t the way that it drives or how nice the interior is, but its price. At $26,970 you get a car equipped with everything necessary to take on rivals costing twice as much, but also the economy of cars costing a little less. We’re not sure what category it fits in other than this one: cars that we can wholeheartedly recommend buying.

SPECIAL EDITION CC GOLD COAST DEBUTS AT PEBBLE BEACH

PEBBLE BEACH, Calif. – To kick off the market launch of the new CC, Volkswagen of America, Inc. will debut a CC Gold Coast edition at the Pebble Beach Concours d’Elegance, August 15-17. The CC Gold Coast highlights the luxury sports coupe with powerful performance, strong lines and luxury touches combining the emotional and expressive stance of a sports coupé with the convenience of a luxury sedan.
“The CC Gold Coast builds upon the luxury sports coupe that debuted at the 2008 North American International Auto Show,” said Derek Jenkins, Chief Designer at Volkswagen’s Santa Monica, California Design Center. “We’ve added luxury and performance extras like tri-coat paint, high-end interior appointments, and ground affects that enhance the sportiness of our newest sedan.”
The unmistakable Volkswagen front-end, with two cross-struts and a centrally placed Volkswagen logo between trapezoidal headlamps is highlighted by the ground effects on the CC Gold Coast. A high-end tri-coat paint, DuPont’s Pepe Pepper, features a rich mix of gold, brown and silver tones that compliment the cars design characteristics.
The rear end of the coupé is also marked by large-surface dual taillights that produce an unmistakable visual image day and night. A spoiler with additional rear-end ground effects helps further enhance the vehicle’s sporty nature. The CC Gold Coast sits on 19 inch propeller style wheels, which provide a combination of sharp style and improved curb appeal.
Volkswagen’s attention to detail is shown off in the interior of the CC Gold Coast with four ergonomically formed sport seats wrapped in luxurious leather, a combination of Latte Macchiatto, Cornsilk with Bronze Piping on the seats with matching accents on the dash and door trim.
The CC Gold Coast edition features the 3.6L TFSI, rated at 280 horsepower and 265lbs.-ft of torque, with the innovative DSG double-clutch 6-speed automatic transmission with Tiptronic, yet another example of the car’s dual nature. The DSG system not only offers the driver the advantage of choosing between fully automatic operation or full manual selection, DSG also changes gears more quickly and smoothly than a conventional transmission, while improving fuel economy.
The CC comes to U.S. market in the fourth quarter of 2008, with a starting price under $27,000.

[Source: VW]

A quick comparison to the VW CC shown at the Detroit Auto Show reveals not much was changed. That's good because we were impressed with its sleek design and hopeful that, by slotting a car above the standard Passat, we'd move one step closer to getting the Phaeton back. (Thanks to Colter for sharing these great shots!)

The trick might be competitive pricing. The lower end model will be powered by a 2.0-liter TSI fourbanger and should start at around $27K with the 3.6-liter FSI V6 starting somewhere north of the $30K mark. By comparison, the Passat starts out at approximately $24K, making the CC not quite as large a leap as the abandoned Phaeton. [AutoNewsEurope via eGMCarTech]

We sort of see where Volkswagen is going with this, though the name takes alphanumericism to its ridiculous extreme. If rumors are true, and they want to bring back the Phaeton, they're going to have to place a car in between that luxury cruiser and the standard Passat. By naming the car the Passat CC, you make it harder to justify the higher price for a car that doesn't necessarily offer that much more than a new Passat. That's our thinking, anyways. [Source: CC]