Audi R8 to launch with V10 power?

The U.K.'s What Car? is reporting that Audi's upcoming R8 sports car will initially be offered with the Lamborghini Gallardo's V10 as its only powerplant, contrary to earlier reports that the car would use Audi's twin-turbo V8 to avoid competing with its Italian partner.
The R8, which will launch in mid-2007, already shares much of its running gear with the Gallardo. The quattro-equipped R8 is said to be positioned against Porsche's all-wheel drive 911 Carrera 4S, with What Car? reporting a company spokesperson as saying the Audi will be priced slightly above the Porsche, which lists for $87,100 in the U.S. market.

If the rumor is true, the 500-hp V10 would give the R8 quite an edge over the Carrera 4S, with its 355-hp flat-six. You would think that Audi's 4.2-liter twin-turbo V8, which makes a stout 415 hp in RS4 trim, would be more than sufficient. The V10 would put the R8 in Porsche Turbo territory (AWD, 480 hp, $123,000).