Edmunds Inside Line reports, "The Volkswagen Rabbit earned top honors in the new Consumer Reports test of affordable hatchbacks. The German hatchback was singled out as the sole vehicle to earn an "excellent" overall score in the competition." The Rabbit beat out last year's winner, the Mazda3 hatchback, as well as the Mini Cooper Clubman, Saturn Astra, Scion xD, Subaru Impreza Outback Sport and the Toyota Matrix.
Many of the models in the test were dinged because they are so new that they have no reliability history. In its June issue, Consumer Reports comments, "Of the vehicles in this report, only the Rabbit and Outback Sport are recommended. We have no reliability data yet for the Toyota, Saturn, Mini, and Scion because they are new or redesigned models for 2008."
Autoblog adds, "The magazine cited the Rabbit's "very well finished" interior for its class, agility, braking and transmission as reasons to choose it over a growing field of small hatchbacks. CR also expects the Rabbit to have an 'above average' reliability record."
If you follow the automotive market, you know that that's the real news -- CR has downgraded most VW products as unreliable for years. In its Automaker Report Cards released in April, CR said "If the only things that mattered to a car buyer were performance, comfort, and safety, Mercedes-Benz and Volkswagen (including Audi) would make the dean's list. Their cars ride and handle especially well, have comfortable seats, and have relatively good fuel economy and acceleration. But most VW-branded models and nearly all of the Mercedes models for which we have sufficient data are below average in predicted reliability."
Then, last month, CR named the VW Eos the best convertible for the money. Now, they've recognized the Rabbit.
Is VW in the midst of a turnaround in quality, and in public perception?
Compare the Rabbit to other affordable small cars with U.S. News car rankings and reviews

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