
The first generation S3 is built on the same A platform of the Audi A3, Volkswagen Golf and Škoda Octavia. The straight-4 20V 1.8 L turbocharged petrol engine comes in two versions of power output: 210 bhp and 225 bhp. Early models (1999-2002) had 210 bhp which is said to be a de-tuned Audi TT engine and was specifically reduced to lessen brand competition with the more powerful TT. Later models (2002-2003) had variable valve timing and 225 bhp. The engine provides a maximum 280 N•m of torque, most of which is available from 2200 through to 5500 rpm. This is the first time a small four-cylinder engine has been used in an Audi S-series car.
Although dubbed Quattro, the S3 uses a different four-wheel drive system. The Haldex coupling adjusts the bias from the front to rear axle as grip changes - most of the time it operates as a front-wheel drive.
The S3 was sold in the United Kingdom, Europe, Mexico, and Australia, but was not officially marketed in the United States.
The S3 was facelifted in 2000, where it was given one-piece headlights/indicator units, different front wings, rear lights clusters and some minor upgrades to interior trim. There had been minor changes to the design previous to this, including digital clock on the dash.
The second generation Audi S3 is powered by a Volkswagen Group-sourced 265 bhp 2.0 L T-FSI petrol engine. As with all S models the design was done in-house by quattro GmbH; RS models are usually tuned in collaboration with Cosworth Technology (now Mahle Powertrain). The engine features revised boost/fuel mapping and increased turbocharger size. The most powerful form of this widely used engine, and permanent four-wheel drive, makes for a 0-62 mph time of 5.7 s and a top speed of 155 mph. Like its predecessor, although badged a quattro model, the S3 does not employ a Torsen center differential (as in other common quattro models) but instead uses the Swedish Haldex system in its four-wheel drive transmission.
In the United Kingdom, the S3 is priced higher than many rivals. BMW's 130i M Sport offers 265bhp, but is slower to 62 mph at 6.1 . Other cars of similar power are a good deal cheaper; the Volkswagen Golf R32 sports 247 bhp, with 0-62 mph achieved in 6.5 seconds. the SEAT LeónCupra (2.0 T-FSI with 247 bhp), Volvo C30 (268 bhp 2.5-litre inline-5 turbo), and Mazdaspeed 3 (2.3-litre turbocharged engine with 263 bhp) also provide competition.
No S3 was officially sold in North America. Reasons range as to either pricing and competition with the Volkswagen Golf R32 and/or stealing sales from the new Audi TT. Altough new rumours are that the North American market will see a 2.0T Quattro model but the S3 has yet to be confirmed.
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