AUDI Sport is weighing a multi-technology replacement strategy for its compact RS models as it considers how to preserve the character of the five-cylinder RS 3 and RS Q3 in a regulatory environment that is narrowing viable future powertrains to plug-in hybrid (PHEV) and battery electric (BEV) options. 

 

The performance division is yet to determine the final technical path for its next compact models, but Audi Sport managing director Rolf Michl confirmed the segment remains central to the RS line-up, and that the five-cylinder engine remains a key part of the discussion. 

 

“The compact segment is definitely one of our core segments, also regarding the viability of RS models – it is basically the entrance into the RS world,” said Mr Michl. 

 

“We were the founder of the high-performance (compact) segment with the RS 3 in 2011, so we are definitely making our thoughts (about how to replace it) … be sure we are fully aware of the importance of this segment, and also about the character.” 

 

The current ‘8Y’ RS 3, which debuted in 2021, will depart the European market in the third quarter of 2027 as Audi has decided not to upgrade the current version of the EA855 evo 2.5-litre turbocharged five-cylinder engine to meet new EU7 emissions regulations. 

 

However, the RS 3 five-cylinder will continue to be made available to Audi Australia, as well as the North American market, into 2028 and potentially 2029. 

 

“The five-cylinder will definitely exist as long as the lifecycle of the base (A3) model runs,” explained Mr Michl. 

 

“It depends on when the A3 will end, but this will definitely be some time after 2027. In the rest of the world, we have really enjoyable sales, so we will keep the (five-cylinder) engine (alive).” 

 

Audi is working on the replacement strategy for the A3, which may involve two distinct models with the same name, with the existing MQB Evo-based A3 receiving a deep facelift to sit alongside new-generation electric A3 models that would utilise the Volkswagen Group’s delayed SSP BEV platform. 

 

Two distinct A3s (and potentially two Q3s) would mirror the multi-powertrain strategy emerging across the premium segment, where manufacturers are hedging their bets in a turbulent market by extending the lifespan of ICE platforms while adding dedicated BEV equivalents. 

 

Rival BMW has utilised this logic for more than 10 years and regards it as a distinct competitive advantage when compared with less coherent BEV strategies hitherto deployed by Audi and Mercedes-Benz. 

 

A multi-powertrain future would give Audi Sport at least two technical bases for future compact RS models. 

 

If the A3 receives a deep facelift, space could be made for a reworked five-cylinder with a PHEV system that would build on learnings from the new RS 5’s sophisticated hybrid hardware. 

 

Another avenue would be to develop a compact BEV RS model based on SSP that could leverage developments in batteries, efficiency, motors and aerodynamics. 

 

“The most important thing is that the RS experience in the compact segment is an authentic one,” said Mr Michl. 

 

“There is no final (decision), but we are absolutely aware of our deeply rooted DNA for the five-cylinder.” 

 

Adding a PHEV system to the inline five would enable Audi Sport to retain an iconic powertrain while stemming its relatively high CO2 emissions. 

 

However, Mr Michl indicated that packaging the engine, 20kWh-plus battery, electric motor and thermal hardware in a small car would be tougher than in the RS 5. 

 

“It would be difficult (to fit the PHEV in), but we are Audi Sport– we achieve the unachievable,” he said, noting that engineers initially saw developing the new RS 5 hybrid as a tough task. A credible power-to-weight ratio, which improved in the RS 5 despite weight gain, is a key internal metric. 

 

The decision process is complicated by Audi Sport declining to engineer market-specific RS powertrains under one badge. 

 

“We want to ensure a truly differentiated RS model in every segment … it wouldn’t make any sense to have a multiple engine strategy. If we build any RS model, it should be the same (worldwide). There will not be an RS for the US with Engine X and for Europe with Engine Y,” said Mr Michl. 

 

Any future compact RS model must be capable of selling across all key global markets, raising the prospect of a PHEV that keeps everybody happy. 

 

In the background, competitive pressure is sharpening. BMW is preparing smaller BEV models on the Neue Klasse platform, including a 1 Series hatchback, while a hotter iX1 derivative could give BMW a zero-emission RS Q3 alternative.

FORD Motor Company CEO Jim Farley says the next generation of battery technology will be crucial for electric utes to become viable for mainstream buyers, warning that current battery-electric vehicles struggle to meet the demands of towing and heavy-duty work. 

 

His comments came during an Australian visit and come months after Ford’s multi-billion-dollar about-face on BEVs, which saw it shelve the all-electric F-150 Lightning pick-up truck and divert investment towards hybrids and extended range electrified models. 

 

Mr Farley said battery electric pick-ups remain a long way from replacing conventional work vehicles unless major advances are made in battery chemistry. 

 

“A pure EV with a large battery is going to be a really bad tow-er. So, if you tow things, the heavier they are, the worse it is, you should not buy a BEV,” he warned. 

 

Mr Farley said the viability of electric utes will rely on the next-generation battery chemistry and that although improvements in battery technology are inevitable, he warned that the timeline remains uncertain. 

 

“I think solid-state has been part of my future like fuel cells have been for my whole life,” he said. 

 

“Everyone’s like ‘well, it’s gonna happen sometime’ … I mean, I don’t see that yet.” 

 

The Ford chief said limitations of current battery technology remain a major barrier for vehicles expected to tow heavy loads or travel long distances in remote areas. 

 

His comments suggest battery-electric utes are unlikely to play a major role in Ford’s near-term product plans, despite growing industry momentum toward electrification. 

 

Instead, Mr Farley believes extended-range electric vehicles (EREVs) – which combine electric drive with a petrol engine acting as a generator – will offer a more practical solution in the short to medium term. 

 

Ford is already heavily involved in electrification, having launched the battery-electric F-150 Lightning in North America as an electric version of the world’s best-selling pick-up. 

 

However, the model struggled to gain traction and production recently ceased as part of a $US19.5 billion writedown of various electric models. 

 

The company has since shifted greater attention towards hybrid and EREV powertrains for its future truck programs. 

 

Mr Farley said Ford’s experience with partially electrified vehicles is helping the company understand how customers use vehicles such as utes in the real world. 

 

“We’re starting to really understand the duty cycle,” he said. 

 

“How big the battery should be and how much the customer is willing to pay for a bigger battery?” 

 

The passionate Ford chief added that electrified work vehicles may ultimately serve purposes beyond transportation, potentially acting as mobile power sources. 

 

“We haven’t really understood yet how much battery should carry for the vehicle for non-transportation use,” he said, referring to a vehicle-to-load system Ford calls Pro Power Onboard and is a feature of the plug-in hybrid Ranger that went on sale locally in 2025. 

 

It enables owners to power everyday tools and appliances from the vehicle utilising energy in the high-voltage traction battery. 

 

Mr Farley’s comments contrast with some competitors that are already moving ahead with battery-electric utes. 

 

Toyota plans to introduce a battery-electric version of the HiLux later this year, although an expected short driving range means initial versions will target mining fleets and other commercial operators rather than private buyers. 

 

Chinese manufacturers are also aggressively pushing into the segment. 

 

Brands such as BYD and GWM have already launched electrified pick-ups in Australia, while South Korean brand KGM (formerly SsangYong) has a battery electric ute with the Musso EV, although this is a monocoque SUV-based model rather than a body-on-frame four-wheel drive like its diesel namesake. 

 

Mr Farley believes traditional truck manufacturers still have an advantage when it comes to understanding real-world work requirements. 

 

Ford’s Ranger and Everest programs – both developed largely by the company’s Australian engineering team – sit at the core of its global commercial vehicle strategy. 

 

“When it comes to real world work vehicles and off-road vehicles, they are a long way from being competitive yet,” he said, referring to Chinese manufacturers. 

 

While battery-electric utes may eventually become viable, Mr Farley suggested the industry’s focus in the near term will remain on hybrid and extended-range electrified solutions.