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Audi S3 pitted against BMW M135i in track battle

Audi and BMW have long been enemies on both the road and the track, with their respective M and S/RS lines duking it out to the delight of auto enthusiasts everywhere. In this video from Evo, two of the rivalry's newest combatants take to the track - the Audi S3 and the BMW M135i.
The new Audi S3, which is finally coming to America, throws down with a 2.0-liter, turbocharged four-cylinder. 290 horsepower and 280 pound-feet of torque are deployed to a Quattro all-wheel-drive system via a six-speed, S-Tronic dual-clutch transmission, allowing the five-door Audi to scamper to 60 in under five seconds.
The BMW, which Americans will know as a long-roof version of the new M235i Coupe, comes to the track with 320 ponies and 331 lb-ft of torque. That's a good bit more than the Audi, but the M135i has only two wheels to send its power to, an eight-speed single-clutch automatic (a six-speed manual is available) and a slightly higher curb weight.

BMW electrifies the 2 Series Active Tourer with a plug-in prototype

BMW is developing a hybrid version of its 2 Series Active Tourer. At the company's Innovation Days 2015, we're finally getting to see the fruits of that electric labor with a prototype for a plug-in hybrid version of the front-wheel-drive hatchback. The Bavarians aren't keeping a secret that they intend to build a model like this in the future. But like the rest of the Active Tourer family, it's likely to remain unavailable to US buyers. BMW is already somewhat familiar with the realm of plug-ins with its i sub-brand and forthcoming X5 xDrive40e PHEV. This 2 Series Active Tourer is largely an adaptation of some of that tech. Up front, there's the company's transversely mounted, 1.5-liter turbocharged three-cylinder gasoline engine making 134 horsepower and 162 pound-feet of torque, and it's linked to a six-speed automatic gearbox. A generator on the front axle can also briefly boost output by 20 hp and 111 lb-ft, or help charge the rear-mounted battery. At the back is an electric motor making 87 hp and 122 lb-ft with a two-speed transmission spinning the rear axle. All of this is linked together via the Dynamic Stability Control to shuffle around power as necessary. The hybrid system generally prioritizes using electric power at speeds below 50 miles per hour and kicks on the engine from there. Depending on the settings, drivers can also force it into EV mode with a maximum range predicted at nearly 24 miles. BMW claims the 2 Series Active Tourer PHEV could get to 62 mph in a brisk 6.4 seconds, and the company estimates the setup can return the equivalent of 118 miles per gallon on the European cycle. While there's a lot of equipment to package together in this system, BMW claims that interior room is identical to the purely internal combustion version. The hybrid battery is under the rear seat, and propulsion for the back wheels is centered around the axle. As a prototype, the automaker isn't really talking pricing yet beyond stating buyers "do not have to pay a high premium for the technology." 2. BMW eDrive in the pipeline for further BMW models: The BMW 2 Series Active Tourer plug-in hybrid prototype. The advent of plug-in hybrid variants in various model series from the BMW brand is making all-electric driving with zero local emissions in a premium car a possibility for an ever-increasing number of target groups.

As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production