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There's a war being waged in Europe for the highest output from the smallest displacement. Alfa Romeo has managed to squeeze 240 horsepower and 260 pound-feet of torque out of a 1.7-liter turbo four for the 4C. Mercedes-Benz has coaxed 355 hp and 332 lb-ft out of a 2.0-liter turbo four to drive the new A45 AMG, CLA45 AMG and GLA45 AMG. But not to be outdone, the Volkswagen Group is said to be working on one of its own that will put both to shame.

Just a day after the 2013 Audi A3 Sportback broke cover, the S3 rolls into the frame. It's obvious that Audi would like everyone to pay close attention to what's under the hood, since the first 11 paragraphs of the accompanying press release deal solely with the brand new 2.0-liter TFSI engine. Created with this specific car in mind, it has the same displacement as the previous S3 engine but that's where the commonalities end.

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