Over a year ago, we speculated about the possibility of Audi bringing to market a screaming, top-of-the-line RS3. It would be a hot hatch to beat them all: Subaru Impreza WRX STI, VW GTI, Mazdaspeed 3, you name it.

Now, the RS3 has been officially confirmed, and it will hit dealerships this spring—but, alas, not in the U.S. Here, the most powerful A3 remains the 2.0T, with its 200-hp TFSI engine. We don't even get the 265-hp S3.

The powerplant in the RS3 is the single-turbocharged, 2.5-liter inline-five also found in the TT RS. Derived from the simple and inexpensive 170-hp engine available in the U.S.-market VW Golf and Jetta, it is basically an EA113 four-cylinder with an extra cylinder. But Audi left nothing unchanged in the RS overhaul. Direct injection, 17 psi of boost, an intercooler, and various tweaks inside the engine allowed Audi to double the 2.5’s power output, twisting it up to 340 hp. Maximum torque is 332 lb-ft, available from 1600 to 5300 rpm; the engine redlines at 6800 rpm. The firing order creates a unique roar that sounds a lot like the original, 1980s Quattro, which is exactly what Audi engineers had in mind and is one of the things we love about the TT RS. Performance should be outstanding, with Audi claiming a 0-to-62-mph sprint of just 4.6 seconds and a top speed governed at 155 or 174 mph. Quattro all-wheel drive is standard.

Exclusively DSG

Unlike the TT RS, the RS3—which uses the same platform—only comes with a seven-speed dual-clutch transmission. This unit, internally called DQ500 and used in various models, works flawlessly, although we feel compelled to reiterate our usual gripes. Audi's console-mounted shifter is supremely annoying, its manual-shift actuation being the opposite of what we prefer. You have to push the shifter away to upshift, which isn’t exactly natural when you are pinned to your seat during acceleration; and when approaching a corner and using maximum braking force, you need to pull the shifter towards you to downshift, which also is counterintuitive. So you'll find yourself playing with the flimsy paddles instead, wondering why Audi doesn't offer a manual transmission, as it does on the TT RS.

You can easily tell the RS3 from the A3 and S3 by its honeycomb grille and huge air intakes. Additionally, the RS3 wears mirror caps painted matte silver, a rear spoiler, and wider front fenders made from carbon fiber. The RS3 sits lower by one inch compared to the regular A3, and 19-inch wheels are standard. Inside you’ll find a flat-bottom steering wheel, unique instrumentation, an exclusive shift knob, and abundant RS3 logos. Xenon HID lights are standard, as is a Sport button that quickens throttle response and opens a valve in the exhaust system for more glorious noise. Two appeance packages are available, with black or matte aluminum highlights.

Like a Budget RS6 Avant

Even though the RS3 is the sportiest A3, you can only get it as a five-door Sportback; Audi will not offer a three-door version. In power, price, and prestige, perhaps its strongest competitor will be the upcoming BMW 1-series M Coupe, which makes similar power from a twin-turbocharged inline-six. This Bavarian duo—the BMW will be launched next summer—will leave most anything else of similar size in the dust.

Pricing for the RS3 will be steep: almost €42,000 before taxes in Germany. While pricing rarely translates directly—or logically, in most cases—from euros to American dollars, we can surmise it’ll be expensive. We might lament Audi's decision not to bring the RS3 here, but we imagine few Americans would be willing to pay for it anyway.