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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.

2018 Audi A5 gets a manual and S5 gets 369 lb-ft of torque

Update: A previous version of this post incorrectly stated that the A5 was the only Audi model to offer a manual transmission with the 252-horsepower inline-four. Audi will offer the same combination on the A4 in the near future. The text has been updated to reflect this. When Audi revealed the new A5 and S5 coupes, we knew the elegant lines of the European model would come to the United States. But the big question was, would the drivetrains, and in particular, the manual transmission, come along? The answer is yes. The 2018 A5, with its 252-horsepower, 273 lb-ft of torque turbocharged four-cylinder, will be offered in America with both a seven-speed dual-clutch transmission, and a classic six-speed manual. These combinations will take an A5 to 60 mph in 5.6 or 5.7 seconds, respectively. The A4 sedan will also offer the manual with the same engine soon, in case you need an extra pair of doors. The four-cylinder model is also the only A5 model with a manual, since the turbocharged V6 S5 only comes with an 8-speed automatic. To make up for a lack of shifting involvement, drivers can take advantage of the S5's readily available torque. Like the Euro-spec model, our S5 will come with 369 lb-ft of twist, and it peaks at a stunningly low 1,350 rpm. That torque, combined with the engine's 354 horsepower, launches the S5 to 60 mph in 4.4 seconds. Every type of A5 or S5 also funnels its power through a Quattro all-wheel-drive system with torque vectoring. A5 owners can also personalize how their cars ride and handle, with either a sport suspension with different sway bars, shocks, and springs, or with the comfort adaptive damping suspension. The latter uses constantly adjusting electronic shocks for improved ride. The S5 has an available sports adaptive suspension that works similarly, as well as a dynamic steering option that can change steering ratios. Capping things off is an extensive list of gadgets and safety features, some standard, such as the LED interior lighting and panoramic sunroof, and others optional, such as Audi's Virtual Cockpit LCD instrument cluster and lane keeping assist. A new feature for the A5 line is the MMI touch system, which allows drivers to write in characters with their fingers. Something Audi hasn't revealed about the A5 and S5 is the pricing and availability, but those details should come soon. Related Video: Featured Gallery 2017 Audi A5 View 27 Photos Image Credit: Audi LA Auto Show Audi Coupe Luxury Performance quattro audi s5

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.