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2014 Audi S1 is a little hatch hiding huge power [w/video]

The Audi S1 takes the Four Rings' high performance brand to its smallest model yet. Offered in three- and five-door forms (pictured above), the S1 is a subcompact hot hatch that seems specially suited for Europe's dense cities and tight roads.
The S1 follows the rest of the Audi S vehicle lineup with a very understated design. It maintains the looks of the standard car, but the larger air dam, 17-inch wheels and side sills tells viewers that something mean is lurking under the surface as well. It packs the Volkswagen Group's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive, and it is enough to get it to 62 miles per hour in less than six seconds for either body style and to a top speed of 155 mph. Handling is aided by a more sophisticated four-link independent suspension to replace the standard A1's torsion beam setup.
They come in just two colors for now - Vegas Yellow or Sepang Blue - and are hitting European roads later this spring. UK prices start at £24,900 ($41,518) for the three-door and £25,630 ($42,735) for the five-door.

BMW considering building 3 Series in North America

There might be even more BMWs coming from North America soon. The company recently announced plans to build a flagship crossover called the X7 at its Spartanburg, SC, factory. Now, rumors are emerging that the Bavarians might be thinking about building a second North American factory that could build its quick-selling 3 Series.
According to Bloomberg, the German luxury giant is considering several possible locations for a North American factory, including two in Mexico, that may build the 3. "We will decide this in the next months. On the North American continent, there's still potential," said BMW production boss, Harald Krueger, in an interview meant for company staff obtained by Bloomberg.
If BMW decides to open a plant in Mexico, it would be following its rival Audi, which already announced construction of a factory there. Mercedes-Benz has been rumored to be working on a deal with Nissan to build its cars South of the Border as well. Rumors of Bimmer considering Mexican production have also cropped up in the past, so it wouldn't come as a total surprise to hear it made official.

Audi Sport Quattro Concept to spawn volume sports car?

There have been two modern re-imaginings of the original 1984 Audi Ur-Quattro: the Quattro Concept of 2010 (shown above) and the Sport Quattro Concept revealed at the 2013 Frankfurt Motor Show. In between them, there have been numerous rumors about what, if any, kind of production car Audi might make of them. According to a new report in Auto Motor und Sport, Audi CEO Rupert Stadler has "indicated... that the car will come," and based on the specs presented, what we get might end up being a mix of the two.
Ulrich Hackenberg, Audi's head of R&D, apparently wants a sports car with wider appeal than the 700-horsepower hybrid Sport Quattro Concept. AMS says his vision would be built on a modified A6 platform - the same MLB architecture under the Sport Quattro Concept - with ample use of carbon and aluminum keeping the weight down to around 1,300 kilograms (under 2,900 pounds). Engines could include a 2.5-liter, five-cylinder (like that of the original, smaller Quattro Concept) offering anything from 310 to 360 hp. Those numbers would be at least 48 horsepower shy of the first concept, but a less-powerful entry point to a new model range would provide a lower cost of entry. Besides, a full model range would likely include a significantly healthier powertrain option on the top end.
At the moment, Hackenberg is said to be unsatisfied with the design of the car, which could well mean we'll get another concept car before a production version appears.