The most famous thing about Audi, its "quattro" all-wheel drive system, was banned from racing in the 1990s because it was unbeatable.
In 1990 and 1991, Audi's V-8 quattro sports car clinched titles in the prestigious German Touring Championship, and in 1996, Audi's A4 quattro won touring-car championship titles in seven countries.
When racetracks stopped admitting quattro cars, Audi started building the kind of ferocious-looking sports car prototypes that compete at France's famous 24 Hours of Le Mans race. Audi's R8 race car first appeared at Le Mans in 1999, and the next year, Audi R8s finished first, second and third at the race. They finished first and second again in 2001 and took first place three more times: in 2002, 2004 and 2005.
To combat the notion that Porsche and DaimlerChrysler's (nyse: DCX - news - people ) Mercedes-Benz subsidiary are the only German automakers capable of building six-figure supercars, Audi has now applied the R8's name and technology to a vehicle that will go on sale next summer as a 2008 model. Expect the price to be between $120,000 and $130,000.
The street-legal R8, which Audi unveiled for the Paris Motor Show, is the company's first mid-engined sports car, meaning its engine is located between the front and rear wheels (in this case, behind the cabin). Race cars are mid-engined because the configuration promotes superior balance, which in turn promotes superior steering and traction. The R8's engine is a 420-horsepower V-8, and yes, quattro all-wheel drive is included in the car.
The nasty-looking, street-legal R8 sits wide and low, with a strongly accentuated rear end (placing the engine behind the cockpit and pushing the cabin far forward establishes the car's proportions). The R8 looks both extravagant and compact. Its short front end and gently curved roof are drawn in a sweeping line, and its big, 18- or 19-inch wheels immediately attract attention.
The large, dark sections you see aft of the doors are called "sideblades"--air deflectors that sweep between the wheel arches and roof section, delivering air for the V-8 to breathe, as well as air for cooling.
The R8's front end has a typical Audi grille. The company usually places its four-ring badge on the grille but has, with the R8, positioned it on the hood for the first time. The flat strips of the R8's racy headlights join flush to the tops of the air intakes. Audi says the light units have designs that look like open pine cones, and that the shape of the internal reflectors of the main-beam headlights was inspired by the architecture of the Sydney Opera House.
The two-seat R8 has tremendous pulling power no matter how fast you're going; 90% of the car's maximum torque is available between 3,500 and 7,600 revolutions per minute. The R8 can accelerate from zero to 60 miles per hour in less than 4.6 seconds, and its top speed is 185 mph. The engine is a high-revving unit, with a power peak at 7,800 rpm and a maximum speed of 8,250 rpm. In a recent statement, Audi said the advantages of a screaming engine like this are "superior power output at high engine speeds and a smooth, eager responsiveness all across the rev range. Added to this are its agility, liveliness and engine sound, which is similar to that of a race car."
One of the best things about the R8 is its habitability. Some supercars, such as Mercedes' $450,000 SLR McLaren, have civilized, luxurious cockpits. Others, such as Ford Motor's (nyse: F - news - people ) $150,000 GT supercar, have fairly crude interiors that can make for punishing driving experiences. The R8 falls in the former camp and may have the nicest cabin of any supercar. Typically handsome Audi design pieces--good-looking instrumentation and a sensibly arranged center console--complement leather and such upscale amenities as a navigation system.
Audi's Neckarsulm factory in Germany will have a capacity of 15 R8s per day.
Forbes Fact
Audi's racing department continued to push the envelope at this year's 24 Hours of Le Mans race with the R10 TDI racer, the R8's successor. The R10 made history as the first diesel to win Le Mans and set a new distance record (380 laps). The car recorded the fastest lap of the 2006 race, and driver Tom Kristensen became the first in this vehicle class to cover 16 laps with one fuel load.
