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Audi spotted testing new S4 at the Nurburgring

Where there's smoke, there's fire. Only in this case, the smoke is the upcoming new Audi A4, and the fire is the S4 spotted undergoing testing in this latest batch of spy shots. Snapped in both sedan and Avant wagon forms while undergoing testing on and around the Nurburgring – where else? – the next-generation Audi S4 will of course be based on the new A4 that's anticipated to debut in Frankfurt this September. That means MLB Evo architecture and styling that takes a page out of the new TT's playbook. But in S4 trim, it'll be altogether more performance oriented. Expect an even more powerful version of the outgoing model's 3.0-liter supercharged V6, pumping out a good 340-350 horsepower to all four of its driven wheels. That power will help it keep pace with the new Mercedes C450 AMG Sport. It won't have to take on the new C63 AMG directly, though, as that'll be the job of the next RS4 that will slot above it. But since that model may never make it to US showrooms, this will stand as the flagship of the new A4 family as far as the American market is concerned. Related Video:

Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification

Audi's Quattro division is now Audi Sport, and it has 8 new models on the way

Audi announced today that its Quattro GmbH performance and technology division will officially be renamed Audi Sport GmbH. The name change is the first since the division's introduction in 1983, and it should more clearly describe its function within the company and remove confusion with the Quattro all-wheel-drive system offered on all Audis, sporty or not. With its new name, Audi Sport will continue to handle the brand's RS models, the R8, customer race cars, customized road cars, and Audi Sport lifestyle products. While the clearer new name is good news, we're more interested in the division's announcement that it will release eight new cars in the next 18 months. The company didn't reveal exactly which cars these will be, but it did clarify which cars Audi Sport is currently responsible for. These include all variants of the RS 3, RS Q3 crossover, RS 6, RS 7, TT RS, R8, and S8 plus. Since the A4/S4 and A5/S5 models were just redone, we can guess that they will be next on the list for RS-ification, resulting in new RS 4 and RS 5 models. If that includes Sportback, coupe, and cabrio versions of the RS 5, and an RS 4 sedan and Avant, that would put us up to five already. Both the A6 and A7 have only seen a minor refresh recently, so it's likely that we'll see new versions of each soon followed by their own RS variants. However, whether those fit in the 18-month window will depend on how soon we see the standard models. Our other guesses are a bit fuzzier, and based completely on speculation. We could imagine one or two ultra-high-performance R8 models being announced – something like the last-gen R8 GT, perhaps offered in coupe and spyder forms – as well as RS versions of the other members in Audi's crossover fleet, the Q5 and Q7. It's also possible one of the models could be a new customer race car, since Audi Sport currently builds and sells the R8 LMS race car. At the very least, we know the Audi Sport folks are busy and people will no longer get them confused with an all-wheel-drive system. Related Video: