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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.

Audi pits S3 against Ur-Quattro on gravel

If you had to pick a winner between the latest Audi S3 and the original Audi Sport Quattro, which would it be? Both hot hatches pack around 300 horsepower and all-wheel drive, but they're separated by a good thirty years of development.
To find out, Audi took both to the old rally circuit in San Remo. Behind the wheel of the Ur-Quattro they put none other than The Stig himself - no, not the Top Gear test bot, but Stig Blomqvist, the Swedish former rally driver who drove the Quattro to the World Rally Championship in the mid-80s. In the S3 they put someone named Hermann Müller, who as best we can tell was one of Auto Union's original Silver Arrow drivers - but he died in 1975, so it's probably the guy who writes for the Audi magazine. Regardless, the contest was pretty close, so it's worth checking out in the 2:26 video clip below.

Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen