Currently, in its third generation, the Audi RS3 (based on the Audi A3) is considered by some to be the king of compact car performance. Audi combines their rich history in rally performance with state-of-the-art technology to deliver what is certainly one of the highest amount of smiles per dollar that can be had in a new car purchase.

It's no coincidence that Audi is releasing the new Performance variant of the RS3 right after we're seeing the release of the new 453 hp BMW M2. There's no doubt that the RS3 and M2 will be cross shopped, and there will likely be a fierce competition between these two vehicles, even if they have largely different strategies to achieve their blistering performance.

Related: These Are The Best Features Of The 1994 Audi RS2 Avant

The RS3 Performance Has Enough Power To Back The Nameplate

Audi RS3 Performance
via Audi

It's no secret that the current model RS3 has plenty of power from its legendary inline 5 cyl turbocharged power plant. Long known as an engine that responds well to modification in the aftermarket, Audi has decided to do a bit of their own in-house engine tuning on the RS3 Performance to squeak out a bit more power without (hopefully) any adverse effects.

Audi says that the power bump is mostly due to an increase in boost pressure. This results in a jump of around 7hp, while torque stays the same, at 369 lb-ft. The RS3 Performance also enjoys its power band slightly higher in the rev range than the standard RS3, as well as having a slightly wider torque curve to match. By all accounts, the increased power should be a linear upgrade over the standard model. Power runs through Audi's quick shifting S-tronic dual-clutch gearbox, where lightning quick shifts help the RS3 Performance crack off an impressive 3.8 second 0-62 time. That's quick enough to leave the upcoming M2 in a cloud of Quattro AWD induced dust. Top speed is also up from the standard RS3, the Performance tops out at 184 mph. Worth noting here that the RS3 Performance also bests the M2's top speed of 155 mph, including the M2 "M Drivers Package" which bumps that speed up to 177 mph.

Related:Audi RS6 Avant Hits Top Speed On The Autobahn

The RS3 Has Top Notch Chassis Dynamics

Audi RS3 Performance
via Audi

The standard RS3 is already a measure of success at its price point, with the potential to beat up on much more expensive cars on the track. Audi has received great praise in making the Volkswagen MQB based car stand out among a very large group of vehicles built on the same chassis. Standard RS3 chassis tuning includes RS specific stiffening, stiffer anti-roll bars, and more negative camber than you would expect a compact sedan to come with. When it comes to the RS3 Performance, the changes are minimal.

Instead of completely re-designing the suspension and chassis, Audi has opted to go ahead and load up the RS3 Performance with features that are optional on the standard RS3. That means that when you get your RS3 Performance, it's already equipped with features like Electromagnetically controlled adaptive RS Sports dampers. The RS3 Performance also comes with standard RS Torque Splitter equipped all-wheel-drive. This system uses a pair of electronically controlled multi-plate clutches that allow power to be variably moved between the rear wheels. Ultimately, this results in a decrease in under steer, as the car can adjust it's differential to vary by conditions as well as user input. Here's what that means to the teenager in all of us; RS Torque has a rear biased setting that allows the RS3 to do beautiful RWD like drifts! No more does picking the sensible AWD sport compact car mean that you're in turn, getting the boring car on dry pavement.

Related:Audi's New Drift Mode Will Send Their Cars Sideways

RS3 Performance Is Available In Limited Numbers

Audi RS3 Performance
via Audi

If you've got the means, the RS3 Performance looks like a worthy upgrade over the standard RS3. There's more power, all the fun RS options come standard, and there's a whiff of exclusivity with ownership. Audi is limiting these cars to just 300, all headed for the European market. Owners will have a "1 of 300" carbon fiber dash badge to help remind them that they opted for the special edition, as well as first ever standard carbon fiber backed sport buckets up front. Other interior options exclusive to the RS3 Performance include a flat bottom Alcantara steering wheel with a special blue trim at the 12 o'clock position, a special background on the infotainment, as well as special performance gauges in the RS monitor system.

Outside, the RS3 Performance sportback and sedan are available in a few different Performance Exclusive colors. Most notably are the pearl effect colors, Nogaro Blue, Arrow Gray, and Daytona Gray. The RS3 Performance specific wheels are wrapped in a set of super sticky Pirelli P-Zero Trofeo-R tires. Serious tires for a serious car.