I would take the ITR any day (and I assume you are comparing it against the GTI VR6, since the 150hp 1.8L is really underpowered for this comparo). German engineering means nothing to me when it doesn't make the car "feel" superior, and in my opinion about the only things the Golf has going for it here is good low end power from a good engine and a really classy interior. Other than that, it's outclassed in all driving dynamics, performance, feel and perceived build quality (for instance, there are few cars at any price matching the Type R's chassis stiffness). The GTI feels much more nose heavy, doesn't have half as good a suspension setup (too much float and understeer), a still-shoddy shift mechanism (though it's much better than the old Corrado VR6 shifter), a soft chassis, less fade resistant brakes, greasy all-season tires, and weighty but uncommunicative steering feel. It also doesn't have a limtied slip differential available, which is a big minus with either of it's torquey motors. If that's what people are calling superior German Engineering these days, make mine an ITR
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PS- I do very much like the Golf, but it's superiority factor as a German car is just way overrated today. But that's just my 02 cents, I could be wrong.