PARIS MOTOR SHOW: Alfa Romeo Giulia AWD to rival WRX STI

Alfa Romeo has announced that it will unveil a powerful new all-wheel drive petrol that will see it rival Subaru's WRX STI.

The new Veloce is set to sit above the current 147kW 2.0-litre but below the Ferrari-developed 375kW/600Nm 2.9-litre V6 QV.

Sticking with 2.0-litres, the new engine comes with around 206kW/400Nm. Available with just an eight-speed automatic, the Giulia Veloce is expected to hit 100km/h in around the same 4.9sec the current WRX STI takes, thanks to the firm's new Q4 four-wheel drive hardware.

As well as the punchy petrol, Alfa Romeo will also offer the Veloce with a more powerful version 155kW/470Nm version of its existing 2.2-litre turbo-diesel that also comes with all-wheel drive.

Alfa Romeo's Q4 system is said to only increase weight by 60kg and, in normal conditions, sends 100 per cent of its torque to the rear wheels. If slip is detected the system can then shuffle as much as 60 per cent of the torque available to the front axle to restore traction and balance.

Featuring large 19-inch wheels both the fast petrol and diesel are expected to get a bespoke chassis tune. Inside, black leather sport seats and a steering wheel mark out the Veloce over the regular model.

As well as the Veloce, Alfa says it will also reveal a new Advanced Efficiency (AE) version of the diesel that's based around the 132kW 2.2-litre turbo-diesel that reduces fuel consumption to just 4.2L/100km with CO2 emissions of just 99g/km.

The increased efficiency comes from a new low-pressure exhaust gas recirculation valve, a new air-water intercooler, different gear ratios and a lower ride height. The Giulia AE also comes with small aero-enhanced 16-inch alloys.

Despite its fuel-sipping antics the Giulia AE can still hit 100km/h in 7.2sec and top out at 230km/h.

The Italian car-maker says it will use the Paris motor show next week to also reveal Veloce version of its Giulietta as well, announcing that the small hatch will come with a 177kW 1.75-litre turbo petrol that will only be available with the firm's dual-clutch automatic.

The Giulietta Veloce comes with bigger Brembo brakes, larger 18-inch alloys and a new body kit.

Finally, the firm will also unveil a new Mito flagship that comes with a new 125kW version of the 1.4-lite turbo MultiAir petrol available in the existing range.

Stay tuned for more Alfa news fresh from the French show next week.