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Audi S1 officially shows itself as 228-hp hot hatch [w/video]

We got the first leaked pics of the new Audi S1 Sportback five-door hot hatch yesterday, and as expected, Audi has unloaded the full details today, including confirmation of its S1 three-door sibling ahead of its debut at next month's Geneva Motor Show. The two cars are essentially identical aside from their door counts, and together, they represent a new entry-level rung into Audi's S car range.
The subcompact S1 is propelled by Audi's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive. The potent combo accelerates the S1 to 62 miles per hour in 5.8 seconds (5.9 seconds for the Sportback) and on to a top speed of 155 mph. Fuel economy is rated at an average 33.6 miles per gallon (40.3 mpg UK) in the UK cycle. The S also gets a completely different four-link independent suspension to replace the less sophisticated torsion beam setup found in the standard A1.
Styling also gets a bump in aggressiveness that befit the S1's performance upgrades. In addition to a new body kit with a lower front air dam and 17-inch wheels, the S1 comes standard with Xenon headlights, LED taillights and two new available exterior colors ­- Vegas Yellow and Sepang Blue. The interior gets combination leather and cloth sport seats, piano black trim and a retractable 6.5-inch color infotainment display.

XCAR shows how Audi engineers let loose with A1 Quattro

In its ultimate mortal guise, the Audi A1 Black Edition - the littlelest little guy Audi makes - costs 22,340 pounds ($33,705 US) in the UK and comes with a turbocharged 1.4-liter four-cylinder that outputs, at most, 182 horsepower and 184 pound-feet of torque. The Audi A1 Quattro - still employing the body of the littlelest little guy Audi makes - costs more than 41,020 pounds ($61,888 US) gets a turbocharged 2.0-liter four-cylinder from the Audi TTS with 252 hp and 258 lb-ft. And quattro. And 17-inch, center-locking, white wheels.
The crew at XCAR gets the A1 Quattro on video, to both question how the A1 Quattro happened and then to praise it even if they never found the answer. The hosannas come too late for anyone in the UK who was waffling about buying one, however, since all 19 meant for the 'sceptered isle are sold out. You can see what we missed out on in the video below.

Audi to spend $17 billion to fight BMW

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.
With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.
Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.