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Audi updates the RS3 hatch to sedan specs, but we still aren't getting it

As great as the upcoming Audi RS3 sedan looks and sounds, we're still a bit jealous of the Europeans and others who get the five-door Sportback version. And now even more so, because for 2018 the RS3 Sportback is being updated to match the specs of the RS3 sedan that debuted last fall at the Paris Motor Show. We'll see the revised extra-hot hatch next month in Geneva. Even though we haven't had a chance to get behind the wheel of either model, the raw numbers alone get us excited. An updated Quattro all-wheel-drive system, a 400-horsepower turbocharged inline five-cylinder engine (up from 362), and a seven-speed dual-clutch transmission will send the 2018 RS3 hatch from 0 to 60 mph in 4.1 seconds. That puts it in Porsche 911 and Chevrolet Corvette territory. Other improvements include a wider track to fit wider rubber, a lowered and stiffened suspension, and a larger set of brakes. Carbon-ceramic front rotors will again be available, like they are on the sedan. Inside, the RS3 comes with a boost pressure indicator, an oil thermometer, and a lap timer. Audi's Virtual Cockpit fully digital instrument panel is available as an option, and one we highly recommend. Aside from all of the performance and tech upgrades, the RS3 has a number of changes to the interior and exterior design. Black Nappa leather sport seats are standard, with special contoured RS sport seats available as an option. Lighting elements have been updated to match those of the restyled A3 and S3, the front fascia has been sharpened, with larger intakes on the bottom corners of the bumpers, a slightly more aggressive front splitter, and the Quattro logo emblazoned on the bottom of the grill. Out back, the car gets two large exhaust tips compared to the S3's four outlets. The overall design is typical Audi: handsome, but conservative. The RS3 sedan goes on sale in Europe in April with the Sportback following soon after. We'll have to make do with the sedan version, which is expected to arrive here next year. The only Sportback model Audi offers here from the A3 family is the plug-in e-tron model, and we don't expect that to change any time soon. But we can dream. Related Video:

Audi Sport Quattro Concept speaks softly, carries a 700-hp stick

As promised, Audi has unveiled its Sport Quattro Concept here at the Frankfurt Motor Show, which takes inspiration from the 2010 Paris Motor Show debut known simply as the Quattro Concept. Both cars clearly seek to draw upon the company's legendary 1980 Ur-Quattro and its closely related Sport Quattro short-wheelbase rally special, yet this concept car looks more production-minded than the 2010 starlet.
Despite its more conservative duds, this handsome and muscular coupe actually packs significantly more power than the 2010 Paris showcar. In fact, it musters 700 horsepower and 590 pound-feet of torque from its plug-in hybrid powertrain, versus the Quattro Concept's more historically appropriate 2.5-liter five-cylinder turbo with 408 hp and 354 lb-ft. We're not going to complain about a twin-turbo 4.0-liter V8 plus an electric motor, nor will we grouse about its 3.7-second 0-62 mph dash, 190-mph top speed or 2.5 liters of fuel per 100 kilometers on the Euro cycle (roughly 94 miles per gallon US).
Stubborn rumors abound that Audi will offer a limited-edition version of this four-place coupe for sale, but for now, the company isn't talking. If such a model is offered, it's expected to cost significantly more than the R8 supercar, which might be a tough sell considering that vehicle's similar performance and more voluptuous - if less practical - shape.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.