Speaking with a source, Car and Driver says the RS3 sedan will be powered by an all-new, turbocharged 2.5L five-cylinder with 400 horsepower. This engine will debut in the new TT RS at the Beijing auto show later this month. A new seven-speed dual-clutch transmission will route power to all four wheels. Depending on how the car is optioned, top speed will either be 155 or 174 mph.
It is expected that Audi will show the RS3 sedan sometime later this year, with sales beginning in the U.S. in 2017.
Source: Car and Driver