Of course this Audi R3 will be co-developed with Volkswagen, and their new objective was to take on Mazda Miata MX-5 with Audi R3's newly equipped 4 cylinder engine taking on MX-5 won't be a problem.
The TT was known to be Audi's entry level sports car today, which critics usually claim that the car was just a VW Golf that has been reskinned and overpriced, now with this new Audi R3 accusation like that will no longer take place, since this vehicle would be a mid-engine sports car that would cost around a conservative €25,000 to €45,000 price range.
As for the engine of this Audi R3, they would put together a level of R3's which would consist of a 1.8 liter TFSI motor producing a 180bhp, a 2.0 liter version that produces a 220bhp and Sports model that would crank up 280bhp, TDI Diesel engines have been popular today so they might also put a lineup for diesel engines from a 1.6 liter common rail that would have a 125bhp to a 2.0 liter that produces a 170bhp and a 204bhp.
I guess the automakers learned their lessons not to take on Porsche's Boxster, they've been very cautious even with their release dates avoiding Boxster's all new 2010 model so expect Audi R3 to start it's production on 2013 or later.
Supercars Audi R3