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SPY SHOTS—AUDI STEPS INTO RING WITH PORSCHE CAYMAN BUYERS

Work is under way to develop a hotter version of Ingolstadt's sports coupe, one packing 280 hp. Likely to be badged the TTS, it promises to be a real alternative to the Porsche Cayman when it goes onsale in 2008 for around 50,000 Euros ($73,000 USD).

The TTS will use the same 2.0L TFSI engine from the Audi S3, but will get bumped up to 280 hp, channeled through Audi's full-time AWD Quattro system and a six-speed manual. The DSG dual-clutch system will also be available as an option.

Expect sporty styling with bespoke wheels, alloy-effect door mirrors, aggressive bumpers, S-batches on the brakes and sill extensions.