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Audi perfecting drool-worthy RS3 hot hatch

A sure-fire way of adding excitement to any Audi is removing the "A" from its model name and replacing it with "RS." Take the RS4, RS5, RS6 and RS7 as proof of this fact. Of course, the transformation from "A" to "RS" wouldn't be complete with a huge bump in power, a far more sporting suspension, enhanced brakes and a more aggressive styling treatment. That process appears to be well underway with the next RS3, which has once again been spotted testing in Germany. The larger wheels (the styles are mismatched, but the sizes look similar) are a good giveaway, as are the larger brakes and more aggressive front bumper, which sports larger intakes. The rear bumper has been modified, although we can't quite tell if the RS line's tell-tale oval exhausts have been fitted. In the past, the RS3 mules we've heard have boasted the distinctive exhaust note of a five-cylinder engine. This particular car, though, has a more conventional exhaust note, of the sort you'd expect from a high-powered four-cylinder. Expect around 400 horsepower and Quattro all-wheel drive, with power distributed likely through some form of S-Tronic dual-clutch transmission. Take a look up top for our gallery of spy shots, and keep an eye open for the RS3 in October, when it's expected to debut at the 2014 Paris Motor Show.

Audi adding 11 new models, focus on CUVs and fullsize luxury

A press release celebrating Audi's delivery of 1.5 million vehicles this year contains almost a passing reference to the future of its lineup: Audi will add 11 models, expanding from 49 models to 60. The news was delivered at the Audi Forum Ingolstadt during the handover of an A3 Sportback to its German buyer, as execs noted that the brand has hit its target of 1.5 million in annual sales two years earlier than planned.
CEO Rupert Stadler said Audi will "expand our product range from the current 49 to 60 models. We see a great deal of potential, particularly in the SUV segment and in the especially prestigious fullsize category." We have little idea of what kinds of cars that could entail right now, other than the Q1, but we'd like to think it could include an RS8, a production version of the Sport Quattro concept and even the Nanuk.
The model aggrandizement will be part of Audi's push to reach two million annual sales by 2020. You can get a few more details on it in the press release below.

Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.