Audi is working on a new sports car called the R3, a mid-engined and smaller version of the R8. The Audi R3 will be the replacement for the on and off again (probably off now due to economic uncertainty and gas prices) Audi R4.
According to CAR Magazine, Audi will be working with Volkswagen on the R3 which will get 4-cylinder turbocharged power giving it enough to take on the Mazda MX-5 but not enough to scare the Porsche Boxster.
As we already know Volkswagen is working on an affordable roadster that it will show in concept form at the 2008 LA Auto Show. That same car will hint at the Audi R3 which could hit roads by 2013.
So what’s going to happen to the TT? Well according to inside sources at Ingolstadt, both programs are running alongside each other as of right now. But when production of the R3 kicks off in 2012, Audi will be forced to decide which model to keep.