Audi R4 denied

In the past few years there are rumors about a "baby" version of its R8 supercar to challenge the Porsche Boxster premium roadster. The new model was supposed to be called R4 and go into production in 2010 with a sales target of 30,000 units a year.

But now, internal Audi sources told Automotive news that the automaker has no plans to build such an R4. " It was never in our product planning," the spokesman said.

German media reports say Porsche’s top executives are concerned about Audi developing cars that threaten Porsche sales. Porsche is expected to take majority control of Audi parent Volkswagen group in the next three months.

Colin Couchman, a London-based automotive analyst at Global Insight, said increased competition between Audi and Porsche would not be a good strategic move over the long term. " It’s best to keep the Audi and Porsche brands as separate as possible," he said.