Although the all-new third generation Audi TT just launched, there are already early plans about its fourth-gen replacement. Due to arrive in 2021, the next TT, according to a new report from Automobile Magazine, may be moved down market in order to make room in the lineup for one all-new model: a potential R5. Yes, consider it sort of a baby R8. If this were to happen, the TT would effectively be demoted. What would a potential R5 be like?

Details are pretty scarce at the moment simply because Audi hasn't made any concrete decisions yet, but the word is that, like the R8, the R5 could have a mid-engine setup powered exclusively by five-cylinder TFSI engines. What's Audi's reasoning for all of this? Let's face it, the TT was never a very good Porsche Cayman/Boxster competitor. It's very much its own car with a unique niche, but that's not a bad thing. Audi seems to understand that it needs to play to the TT's strengths. The introduction of an R5 would allow the TT to do just that while also giving Audi something to fight the also upcoming next-gen Cayman/Boxster duo.