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Audi RS3 spy shots foreshadow an ultra-hot hatch

Not all vehicle prototypes and mules require heavy camouflage - sometimes they can be hidden in plain sight. That's probably what Audi was hoping for while testing its new RS3 wearing S3 duds, but thanks to some visual and audible telltales, our spy photographers were able to recognize this as a precursor to the marque's ultra-hot hatch testing near the Nürburgring.
Our photographer noticed the signature exhaust note of a five-cylinder engine, which suggests the RS3 could borrow its motivation from the excellent TT RS. Producing at least 340 horsepower, this 2.5-liter turbo powerplant could be the perfect answer for the new A45 AMG from Mercedes-Benz. The big brakes on this RS3 mule give us our best idea about the car's high-performance intentions, with Audi RS wave brake rotors and six-piston calipers peering out from behind the oversized wheels.
In production form, the RS3 should have a much different appearance from what you see here, with sportier design cues including oval-shaped dual exhaust outlets and a more aggressive front fascia. While we're still waiting for our first taste of the S3 in the North America, we'll be holding our breath for the RS3 to make its way here, as well.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Next Audi RS4 to get V6 turbo, US sales still unclear

Audi's high-performance S models have forged a reputation in the US for offering wonderful driving dynamics in a package that doesn't scream, "I bought a sport sedan." However, its even higher-performance RS models are still somewhat of a rarity here. While the RS5 and RS7 are in the current US lineup, many of the wild RS models that Europe gets, like the RS6 Avant (pictured above), never make it to these shores. Unfortunately, that might not be changing anytime soon with the next-gen RS4.
The RS4 will follow the lead of the next BMW M3/M4 and (rumored) next Mercedes-Benz C-Class AMG and make the switch to a smaller turbocharged powerplant. According to an Audi insider speaking to Car and Driver, the next RS4 will drop the last generation's 4.2-liter V8 in favor of a turbocharged V6. The engine block will likely be shared with the supercharged 3.0-liter V6 in the regular S4 but fitted with two turbochargers. Power would likely be around 400 horsepower to match the 425-hp M3 and rumored 450-hp C-Class AMG.
Unfortunately, the RS might not make it across the pond to our waiting hands because the source says no decision has been made to export them yet. Obviously, we hope that Audi makes the right decision and brings the next RS4 here.