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Next Audi TT RS comes in 2016, manual transmission doesn't

This line comes from our review of the 2012 Audi TT RS: "Did we mention that the 2012 TT RS is only available with a manual transmission?" When we review the next-generation TT RS, expected to launch next year, we'll have to rewrite that line as: "Did we mention that the TT RS is not available with a manual transmission?" That's the word from Car and Driver, which has heard that the superheated little coupe will only come with the seven-speed dual-clutch gearbox found in the Euro-market RS3 Sportback. The first generation came with a dual-clutch and a manual transmission in Europe, but the unit for our market required the laying on of hands to get from one cog to another. If we don't get another, the blow will be all the more painful because Audi's manual transmissions are so good. Our assessment summed up the last one thus, "With a short, precise throw and excellent action, the transmission is a mechanical work of art." Good news? Volkswagen says the installed DQ500 dual-clutch is faster, more refined, and more reliable. As well, power from the reworked 2.5-liter, turbocharged five-cylinder should rise from 360 horsepower to "around 400." You'll just be asked to keep your hands off of it. The first-gen car only came here after a successful Facebook petition gathered more than 11,000 signatures in a month, we wish Audi had given us a chance to weigh in on this, too. Although we will probably get it later next year as a 2017 model, we could see it at the Frankfurt Motor Show in two months. Related Video:

Audi planning S3 Plus with 375 hp?

There's a war being waged in Europe for the highest output from the smallest displacement. Alfa Romeo has managed to squeeze 240 horsepower and 260 pound-feet of torque out of a 1.7-liter turbo four for the 4C. Mercedes-Benz has coaxed 355 hp and 332 lb-ft out of a 2.0-liter turbo four to drive the new A45 AMG, CLA45 AMG and GLA45 AMG. But not to be outdone, the Volkswagen Group is said to be working on one of its own that will put both to shame.
The engine is reportedly being based on VW's existing 2.0-liter turbo four, only enhanced to produce a massive 375 hp and 369 lb-ft of torque. The key to getting there was poaching Friedrich Eichler, the engineer who designed AMG's aforementioned high-output engine, and mandating him to do still better.
That's all well and fine - and perfectly impressive - but just what does VW plan on doing with the new engine? A whole lot, according to reports. It's expected to power the new Scirocco and a new Golf R Evo expected to debut at the Beijing Motor Show in April, and you can bet it'll be slotted into another few applications as well. But the first vehicle expected to get it will be the Audi S3 Plus.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.