Mk7 Volkswagen GTI Mule

We've heard that Volkswagen will be turning up the wick on the next-generation GTI, and this newest report is certainly fanning those flames. Autocar now says the 2.0-liter turbo four in Volkswagen's next hot hatch will make all of 260 horsepower, but perhaps more importantly, the front differential will get some new technology to keep all that power from just turning into tire smoke.

The so-called VAQ limited-slip would use an electronically controlled Haldex clutch, bringing all-wheel-drive technology to the front-drive GTI, according to the report. The GTI will, of course, continue to be based on the Golf, but it is said to employ aluminum in the floor pans and roof to shed some weight. Supposedly, the top-of-the-range Golf R will actually boast a carbon fiber roof.

If Autocar is right, the Mk7 GTI would be the most powerful yet, topping the GTI Edition 35 and bumping the next GTI up to Golf R-like performance. Which begs the question: So just how powerful will the next R be?

We expect to see the new Golf debut at the Paris Motor Show this September.