Audi will have a higher horsepower 2.0 liter four-cylinder A3 and also a roughly ~300 horsepower S3 model. To combat the 322 horsepower M235i as well as the Mercedes-Benz CLA45 AMG expect an Audi RS3 model with the award winning 2.5 liter inline-5 motor from the TT-RS.
In addition to the sedan, Audi stated in a somewhat surprising move that the A3 convertible will make it to the USA to compete with the convertible BMW F23 2-Series. Mercedes-Benz does not have a competitor in this segment.
The entry level luxury segment is heating up.