VENICE, Italy – What does a centuries-old city, built on over 100 small islands, that rises fantasy-like from the Adriatic Sea, have to do with a small, premium sedan from Germany?

I don’t know either, but Audi seems to think since they both have a long history of tradition in common, Venice’s first-ever car launch should be with the A4.

Who am I to argue? That there are no cars or roads whatsoever in Europe’s most famous floating city seems a minor detail too boorish to point out. Thankfully, the fleet awaiting us on Terraferma, Venice’s mainland, showed no indication of any modern-day amphicar modifications.

In fact, although the new car is more than 90 per cent re-engineered, it looked very much like the current Audi A4. That’s only logical when you consider what an important makeover this is; the phrase “sink or swim” was probably not part of the development lexicon.

There have been four previous generations of Audi’s A4 – nine if you go back to when it was known as the Audi 80. It’s since become one of the key vehicles in Audi’s portfolio, selling over 12 million units globally, and it’s as important to Audi as the C-Class is to Mercedes Benz.

Needless to say, any changes were not undertaken lightly. Outwardly, the A4 doesn’t really look any different from the current model. It’s fractionally longer with a slightly reworked grille, a hood that’s pulled outward at the corners and the addition of a tiny ducktail on the deck lid. Otherwise, it looks like the same old A4.

The familiar shape has spent more time in the wind tunnel than any other Audi in history. A very subtle massaging of the sheet metal, which includes the trunklid’s crease, has resulted in a world-class drag coefficient of 0.23. The heightened slipperiness and a weight reduction of up to 120 kilograms lead Audi to claim a fuel consumption reduction of up to 21 per cent.

Interior space increases, adding 24 millimetres of headroom and 23 millimetres of rear legroom, making it the longest interior in its class. There’s also been extensive sound deadening to improve noise, vibration and harshness levels, making the cabin as quiet overall as the A8 sedan. Trunk space, at 480 litres, is respectable for its segment.

While the A4 rolls out with seven different powertrain choices – four diesel and three turbocharged gasoline engines – we’ll concentrate on the 2.0-litre turbo-four, since that’s the one we’ll be getting in Canada. A diesel option is suggested to arrive later, but given Volkswagen‘s recent emissions scandal, the lack of forthcoming information wasn’t exactly surprising.

We divided our time between a well-optioned Technik model with Quattro all-wheel-drive and a front-drive Komfort trim. Both cars came with the 2.0-litre TFSI turbo-four, producing 252 horsepower and 273 lb.-ft. of torque, and mated to a seven-speed dual-clutch automatic transmission. Xenon HID headlights are standard, and LED matrix units on our testers are optional – but unavailable in North America.

As expected, it’s a beautifully crafted interior, with matte wood trim and power-adjustable seats being the only obvious visual differences between the two test models.

The A4 receives the same Virtual Cockpit which debuted in the TT, featuring a 12.3-inch instrument display that Audi describes as the new benchmark, providing a 1,440-by-540-pixel resolution via two Nvidia processors. The display incorporates gauges, relevant information and navigation guidance rendered in beautifully crisp colour. Drivers can toggle between screens depending on which they would like to prioritize, without hiding crucial operating information.

The redesigned MultiMedia Interface (MMI) system has been greatly streamlined, cutting out the endless shuffling through pages in an effort to reduce driver distraction. There’s easy-to-use voice recognition and the main control knob is now touch-sensitive, receptive to the “finger swipe” technology that Audi introduced earlier in some of its top-range models.

There’s also a bank of pre-set shortcut buttons that can store various functions. Touch-sensitive climate control buttons are now ridiculously easy to use and quickly intuitive – a simple flick of the finger activates the A/C display and toggles up to switch on or down for off, with two large, simple flanking knobs for temperature.

Under the centre console, the so-called Audi Phone Box can charge your smartphone, cable free, or project your phone apps on the MMI for a larger display that’s presumably meant to be less driver distracting. Rear passengers can surf the Internet, watch a movie or use Google Search to assist the driver on an optional tablet.

Underpinning the A4 is the new MLB Evo platform – the same one found in the redesigned Q7. Five-link suspension fore and aft has been redesigned for better control while cornering, yet without any resultant harshness over rough pavement.

Navigating through what seemed like an endless succession of roundabouts and toll booths before heading up to the Dolomite mountain range, I used the paddle shifters during the steep descents. Otherwise, I left the seven-speed transmission alone to do its job, which it did beautifully.

There’s plenty of power and no discernible turbo-lag from the exceedingly quiet-running engine. Dropping the window in the deep mountain tunnels failed to reward us with any sort of thrilling exhaust note – enthusiasts may decide to wait until there’s an RS variant available.

The A4 stays flat while negotiating the run of tight switchbacks we encountered on our way up the mountain. Audi has done a beautiful job with the A4’s handling – even with Sport mode selected, the dampers absorb any bumps or dips without any discord entering the cabin. Electro-magnetic steering feels weighty and accurate, delivering a decent amount of feedback. Braking is well-modulated without grabbiness.

There’s an overwhelming checklist of new safety and driver assistance technology in the A4 that includes adaptive cruise control, traffic jam and active lane assists, and even a self-parking gadget that uses everything from road markings, radar and satellite navigation data to keep you right side up and between the lines. It will even drive the car up to 65 km/h, provided you put your hands back on the wheel every few seconds.

It’s hard to find fault with the newest A4. It’s a lovely premium car that takes the exclusivity of the A8 and bundles it up in a smaller, more attainable package. Pricing is not available as yet, but should be announced closer to the A4’s Canadian availability late next year.