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The 2018 Audi RS3 sedan priced above the BMW M2 and Mercedes CLA45 AMG

Today, Audi finally released pricing for the 2018 RS3 sedan and it's not quite the performance bargain you may have been hoping for. The RS3 sedan, available for the first time in the US, will start at $55,875 when it hits dealer lots later this year. That's thousands more than the competition from BMW and Mercedes-Benz, though it's not quite a straight one-to-one comparison. View 23 Photos For reference, a BMW M2 starts at $53,495 while a Mercedes-Benz CLA45 AMG will set you back at least $50,875. With an all-new 400 horsepower inline-5 under the hood, the RS3 is packing more punch than its German rivals, and, unlike the M2, sends power to all four wheels. Standard features include LED lighting, Audi pre sense basic, and blind-spot monitoring. Other standard equipment hasn't been announced yet, so it's difficult to make a straight comparison to the M2 and CLA45 AMG. The RS3 sedan will make its North American debut next week in New York. While the car will hit full production for the 2018 model year, there will be a limited number of 2017 RS3s produced. At $55,450, the 2017 model is slightly less expensive than the 2018 RS3. That small batch will be preconfigured with carbon trim, Audi virtual cockpit with MMI Navigation plus, a Bang & Olufsen sound system, 19-inch, five-arm-blade design wheels, red brake calipers, and the RS sport exhaust system with black tips. Sounds like a good deal if you've already got your heart set on the latest from Audi Sport. Related Video:

Audi kills off its 420-hp four-cylinder engine project

Audi's supercar-slapping, fire-breathing four-cylinder concept engine will remain just that, with Autoblog confirming that it has been internally killed off. Speaking at the launch of the TT RS, the engineering boss of Audi's Quattro GmbH division, Stephan Reil, said the Volkswagen Group had stopped all development of the 420-horsepower, 2.0-liter four it showed in the 2014 TT Quattro Sport Concept car (above). Despite previous assurances that Quattro had roles for both the EA888-based engine and Audi's wildly charismatic 2.5-liter, five-cylinder motor, post-Dieselgate reality has killed the smaller engine. "The 400-horsepower EA888 engine is dead," Reil said. The EA888 engine was conceived and developed by the same man behind AMG's powerhouse 2.0-liter four. Friedrich Eichler left AMG to become the Volkswagen Group's gasoline engine development go-to guy, and he was confident the 420-hp engine could be turned into a production car quickly, as was then-Audi development boss, Ulrich Hackenberg. It was even suggested that because the EA888 engine family bolted straight into the Volkswagen Group's ubiquitous MQB small-car architecture, the little powerhouse could be cheaply and quickly dropped into any of the company's cars that needed an image boost. Since then, Quattro has elevated the five-cylinder motor, switching it to an all-alloy block with a magnesium oil pan to cut down its weight while boosting its power and torque levels. Where the four-cylinder engine was shown with 420 hp and 332 lb-ft of torque, the production version of the TT RS's new five-cylinder engine totes 400 hp and 354 pound-feet of torque. The smaller engine's proponents claimed a 0-62 mph acceleration figure of just 3.7 seconds for the concept TT that carried it, and it might not be a coincidence that the all-new TT RS claims exactly the same figure. The 2.0-liter motor had a torque peak that arrived at 2,400 rpm and began to taper off at 6,300 rpm, while its power apexed at 6,700 rpm, thanks in part to a turbocharger that could feed it up to 1.8 bar of air. Flip to the TT RS' data and you're looking at more torque at lower revs and a touch less power, but at higher revs. That's not a lot of wriggle room for the concept engine to operate, especially when the perceived value of the five-cylinder engine is higher than the four, and the four's development and production costs would be higher than the five's.

Berlin demanding costly German recall of 12 million diesel cars

BERLIN - Germany's Transport Ministry is in talks with car manufacturers about updating the engine management software of up to 12 million diesel vehicles, people familiar with the talks told Reuters on Monday. The cost of updating cars could amount to as much as 1.5 billion to 2.5 billion euros ($1.7 billion to $2.8 billion), and the ministry is demanding that vehicles with engines conforming to the euro-4, euro-5 and euro-6 standards be part of the recall, government sources said. The German government has demanded that the auto industry shoulder the costs of the update and is pushing for a solution to be presented before German elections on Sept. 24. The ministry is in talks with German auto industry associations VDA and VDIK as well as representatives from local governments to try and cut nitrogen oxide pollution by about 25 percent, the sources said. The talks come amid growing opposition to diesel in the wake of an emissions cheating scandal at Volkswagen. Several European cities including Stuttgart and Munich have considered banning some diesel vehicles because of emissions of nitrogen oxides, which are blamed for causing respiratory disease. ($1 = 0.8942 euros) Reporting by Markus WacketRelated Video: Government/Legal Green Audi BMW Mercedes-Benz Porsche Volkswagen Emissions Diesel Vehicles dieselgate