Mercedes and BMW are working on their next small super-saloons: the next M3 and C63 AMG show.

The C63 is to feature a version of the 6.2-litre naturally-aspirated V8 used in the E-class, G-class and the just-launched CLK63. The C63 is going to be extremely rapid: 60mph should come up in around 4.5 seconds.

The M3 coupe will be the first of a slew of M-powered cars in the current 3-series range. It seems that convertible and saloon are to follow. It will feature a 400bhp V8 which revs to 8250rpm. The previous M3 used a 3.2-litre straight six producing 339bhp and took 4.8sec to reach 60mph, so the new car is going to be even quicker.

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