Spy Shots—Peugeot Targets Audi with new 308 RC-Z

Peugeot first showed the 308 RC-Z Concept car at the 2007 Frankfurt Motor Show, but spy photographer Brenda Priddy says these spy shots indicate that the French automaker intends to build the Audi TT fighter and start production within a year.

"Competitors in this field are fierce, so the car will have to produce a very special lineup of powertrains to run alongside them," Priddy says. "The RC-Z will probably hit the streets with the same engines as higher-level 308 models, and there's a rumored 250 HP powerplant. Turbo diesels will probably be included as well."

PSA Peugeot Citroen is realigning itself, Priddy adds. While Citroen is going upmarket with models like the DS line, Peugeot is keeping a harder tab on the sporting side of things, such as Le Mans and the 308 RC-Z.