Audi taking aim at Porsche?

In what could prompt an intriguing family feud, Audi is reported to be developing a compact sportscar that will rival Porsche's Boxster. Authoritative industry journal Automotive News Europe reports that the bold newcomer -- referred to as the R4 -- will debut in 2010 as a mid-engine, two-seater.

The R4's arrival could spark an interesting state of affairs as Porsche owns a 27.4 per cent stake in the Volkswagen Group, of which Audi is a part.

By launching the R4, Audi would be trampling all over Porsche's turf, but it wouldn't be a first. Witness the recent international debut of the mid-engined, V8-powered R8, which has already been labeled a credible Porsche 911 alternative.

It's not yet known how the R4 will shape up, but perhaps last year's R-Zero concept (pictured) might provide a few clues, even though the design study used four in-wheel electric motors, rather than conventional petrol power.

Audi reportedly has ambitious goals for the R4, and ANE suggests annual sales volumes would exceed 30,000 cars. By comparison, Audi plans on annually selling only 4000 examples of the larger, more expensive R8.

Ingolstadt hasn't officially confirmed that it will produce the R4, but Jens Meier, head of product marketing for Audi, told ANE: "We think we can fill the holes between the TT and Lamborghini."

We should point out here that Audi owns Lamborghini.

Porsche, meanwhile, is said to have designs on asserting greater influence in the VW Group boardroom. It currently holds two seats on the VW supervisory board and Porsche CEO Wendelin Wiedeking wants to add "at least one more," according to ANE.

If Porsche does, indeed, succeed in having a decisive say in VW's affairs, it may 'discourage' the likes of Audi from developing cars that pose a threat to its offerings.

Just what VW-Audi might have to say about Porsche's push into the four-door exec saloon/GT segment is another story…

Meantime, Audi is set to launch its A5 coupe answer to BMW's 3 Series two-door. For more click

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