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The hot hatch without a hatch | 2017 Audi S3 First Drive

The 2017 Audi S3 is a car without equal. That might end up on a billboard, but it's actually meant quite literally, as in the S3 has no direct competitor. Other compact luxury sedans, of which there are few, can't match its performance. The BMW 2 Series has two doors, plus it's rear-drive. The bonkers Mercedes-AMG CLA45 is on another power and price planet altogether. The mechanically related VW Golf R isn't a luxury car and has a hatch instead of a trunk. And so the S3 exists as an oddity. But it's a fun oddity, and a well-made one too. For 2017, it receives a number of noteworthy changes to keep it fresh and technologically relevant. Most also apply to the 2017 Audi A3, the car on which it's based, which itself gets a new 2.0-liter turbo four base engine in place of the old 1.8-liter. Paired with front-wheel drive and essentially a variation of the Quattro model's carry-over 2.0-liter, it produces 186 horsepower (up from 170) and returns 29 mpg combined (up from 27). That revamped A3 wasn't on hand for the press drive in Durham, North Carolina, so we were not-at-all stuck with the 2017 S3. Its own 2.0-liter turbo four is unchanged, still pumping out 292 hp and 280 pound-feet of torque through a six-speed DSG dual-clutch automatic transmission. Audi says it'll hit 60 mph in 4.7 seconds, which is a full second quicker than the 220-hp A3 Quattro as well as about a half-second quicker than the Audi A4 Quattro. That bonkers CLA45 is around the four-second mark. Indeed, having so much power in such a small sedan is a novel and grin-inducing experience. The throttle response is sharp enough in standard mode, but tap the dash-mounted Audi Drive Select toggle to choose Dynamic, and it comes even more alive, eagerly shooting the S3 forward with the merest hint of a toe wiggle. The DSG is also quite happy to downshift when called upon, either by said toe or by itself when under braking. Blipping down two gears when heading into a corner is commonplace here, as are the sharp little barks that emanate from the S3's quad exhaust tips. And then there's the S3's Quattro all-wheel drive, which has been updated for 2017 with the same performance-oriented system found in the TT and TTS. Although its front/rear torque split is constantly changing based on current traction conditions, it nevertheless skews towards a rear torque bias to the point that, when in Dynamic mode, it won't reduce power in oversteer situations.

Porsche offering 250-hp 718 Cayman, Boxster in China

Porsche is studying a new approach in the lucrative Chinese market – less power. Automotive News Europe reports that the famed German manufacturer will sell less powerful versions of the 718 Cayman and Boxster in the People's Republic. In fact, the new cars are already on Porsche's Chinese consumer page. The hope, 718 chief Jan Roth told Automotive News Europe, is to replicate the success Porsche's sister company Audi has had with the TT. "A lot of the TTs that Audi sells in China, the smaller displacement 1.8-liter versions with rear-wheel instead of all-wheel-drive, are priced below that, Mercedes too," Roth said. We're guessing the comments about rear-wheel drive and a 1.8-liter engine are either typos or something was lost in translation, because Audi's Chinese website only lists a 2.0-liter engine, and most gearheads know the TT rides on a front-drive platform. Audi's success is largely down to price – 542,800 yuan ($81,549, at today's rates) for a base TT. Roth called 600,000 yuan "a magical threshold for customers in China." To hit that price point, Porsche is dropping the 718's 2.0-liter, turbocharged four-cylinder – offered North America and Europe with 300 horsepower in base form – to 250 ponies. The Cayman starts at 588,000 yuan ($88,340) while the Boxster is 598,000 yuan ($89,842). The 350-hp Cayman S will carry on unchanged. According to ANE, Roth said Porsche's Chinese strategy could drive 718 sales up to 4,500 units a year by 2017, nearly double the 2,500 Boxsters and Caymans sold in 2015. Could a similar lower-tiered strategy work in the US? We'll need to put on our speculation hats. In the US, the base car is about 81 percent of the price of the 350-horsepower S model. If Porsche were to offer the same discount for the hypothetical, 250-hp 718s, it could set the starting prices at $43,659 for the Cayman and $45,360 for the Boxster. That lines up neatly with the $43,500 TT Coupe, but this theoretical 250-hp Boxster would fall about $1,640 less than Audi's soft top. We shouldn't forget Porsche's expansive options catalog – we doubt there'd be a lot of sub-$50,000 718s on dealer lots. But still, slashing over $10,000 off the price of a $54,000 car is a big ask – Porsche would almost have to de-content such a lower-tier model. But – and this is a Kim K-sized but – moving the 718 downmarket would open the brand to a new range of consumers. Not only would these new cars be the cheapest sportscars from Porsche money could buy.

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg