It looks like the Audi RS3 is just too much for Mercedes as they are looking to compete with the lower Audi S3 model.
Spies spotted Mercedes testing out the new Mercedes-AMG A-Class model out in the open. It is believed that this new model will be coming to sit below the Mercedes-AMG A45 model. Mercedes have not confirmed anything yet but the new model is rumored to be called the A40 or the A43 AMG.
It has been speculated that it could be coming in with a 2.0 liter turbocharged engine that will be offering about 310hp and 320hp. If that is the case, the new Mercedes-AMG A-Class would be able to take on the Audi S3 model which currently comes with a turbo-four engine that pushes out about 292hp.
The Audi RS3, on the other hand, will come in with a 2.5-liter turbo-five engine that will be offering about 400hp. While the new model should not be a threat to the Audi RS3, they will still have to look out for the Mercedes-AMG A45 model which should be pushing out about 400hp as well.