Volkswagen, which has been sparring with Toyota over the past decade for the title of world’s largest automaker, recently took some shots to the gut in a well-chronicled diesel engine emissions scandal that erupted late last year.

VW admitted that it rigged its diesel engines to emit fewer pollutants during emissions testing than they do during real-world driving. This scandal could have been a knockout blow to many manufacturers, but Volkswagen is trying to lift itself off the mat by compensating U.S. diesel owners a cumulative $10 billion while paying billions more in fines and infrastructure changes.

Whether it’s due to the negative publicity, the unavailability of its popular diesel offerings or something unrelated, Volkswagen’s sales have taken a beating since the scandal broke. Year-to-year sales down every month since last year.

Vehicles such as the Passat model we recently tested are good enough to spark Volkswagen’s comeback. Roomy, comfortable and as affordable as some premium compacts, the Passat has so much going for it that it should be on every midsize buyer’s shopping list.  

The Passat received a significant mid-cycle redesign for the 2016 model year, which is what we tested. The 2017 models are just starting to arrive in showrooms, but not much has changed. Forward Collision Warning and Autonomous Emergency Braking assist is now standard on all trim levels, and a few other standard features have been added to the SE and R-Line trims.

Our test car was an entry level 1.8T S. Its starting price of $22,440 (plus $820 destination fee) hasn’t changed for 2017. Other trim levels, in order of price and features, are the R-Line, SE and SEL. Starting price for a top-of-the-line, 2017 V6 SEL is $33,995.

The SE can also be ordered with the 3.6-liter, 6-cylinder which Volkswagen modestly rates at 280 horsepower and 258 pounds-feet of torque. But the standard engine for all trims — and the only one available on the S and R-Line — is a 1.8-liter, in-line four-cylinder.

If you’re thinking that seems like a small engine for a fairly large midsize sedan, drive a Passat. With the small engine, curb weight is a lean 3,263 pounds. The V6 adds 307 pounds. Direct injection and turbocharging enable the four-cylinder to generate 170 hp and 184 lbs-ft of torque, but it feels more powerful than that.

Some of the credit should go to an outstanding six-speed automatic transmission. It behaved in our test car the way all automatics should, shifting fluidly during relaxed driving and delivering quicker gear changes at higher rpms when the throttle is opened up. 

Six-cylinder Passats get VW’s acclaimed DSG dual-clutch automatic. Unfortunately, the Passat is no longer available with a manual transmission.

The test car’s powertrain impressed us with its responsiveness and smoothness, which shouldn’t come as a surprise since the same powertrain is fitted to some luxury-brand Audi models. Our stopwatch said the Passat takes 7.6 seconds to accelerate from zero to 60 mph, but it feels quicker. That’s probably because its maximum torque kicks in at just 1,500 rpm, a statistic that translates to satisfying response while driving around town.

The Passat, which is built at the VW plant in Chattanooga, Tennessee, doesn’t disappoint on the highway, either. Judging by a one-day roundtrip to Providence, Rhode Island, Volkswagen got the gearing just right for American interstates. Getting up to highway speed is easy, and once on the interstate the Passat provides plenty of passing power when it’s needed.

The engine is quiet enough to be totally unobtrusive whether passing or cruising along at a steady 70-75 mph. At those speeds, the Passat’s sleek lines, light weight, gearing and engine tuning helped us achieve impressive fuel economy. We averaged 38.2 miles per gallon (according to the onboard trip computer) during our Providence trip, which included around 15 miles of city driving. 

Although that trip skewed our overall mileage, we were nevertheless impressed that the Passat averaged 36 mpg during our week-long evaluation. That’s a lot better than its EPA rating of 25 city/38 highway/29 combined mpg.

We were as impressed with the Passat’s demeanor as we were with its fuel economy. Its cabin is so quiet at 75 mph that conversations with rear-seat passengers can be conducted at normal speaking levels. The Passat does such a good job muting road noise that passengers may not notice a bus humming along in the adjacent lane if they’re looking out the opposite window.

It’s easy for passengers to relax in the Passat’s spacious cabin, which is highlighted by wonderfully contoured seats and more than 39 inches of rear-seat legroom. The 15.9 cubic-foot trunk also is spacious.

The Passat’s roominess, quiet ride, ample power and stable handling give it a luxurious feel belying its extremely competitive price. But the Passat S lacks several features that are becoming more and more commonplace on midsize sedans. You’ll need to move up to the $25,495 1.8T SE to get heated or power seats, heated door mirrors, lane departure and blind spot warning systems and pushbutton starting.

We think that’s more than reasonable given everything the Passat has going for it. Let’s see if it’s enough to help VW turn around its flagging sales.