A must read intel report here about the future of Audi R models and mid-engine supercars.
At Audi this vehicle would most likely establish the smallest R-car, expanding from the lone R8 into a full line of sports cars. An R4 seems to be the most likely designation for the car, according to the rumor mill, but a transverse engine configuration and small size makes us wonder how likely this is. Based on the fact the A4 uses a longitudinal engine and is a much bigger car, we suspect it may bear an R3 designation. Discussion of a possible TT model on this platform seem unlikely, as our sources tell us the TT is set to remain front engined. Regardless of name, electric e-tron versions are likely.
Since the engine is transverse we can make a few more assumptions. Audi will be limited to use of its inline or narrow angle VR engines such as the V6 recently removed from the TT and A3 lineups. More than likely the largest and most powerful Audi engines in the car would be the 2.0T or the 350 hp 2.5T from the TT RS.