New reports out of Europe this week suggest the recent unveiling of BMW's new 1 Series M Coupe may have put a fire under Mercedes-Benz.
Only last month, AMG boss Ola Kallenius confirmed that the next generation of A- and B-Class Mercedes' will be offered with highly-tuned AMG variants, presumed to take on the likes of the Golf R and its Audi S3 sibling.
Now, new reports are claiming that the hi-po A-Class AMG will fly right pass the Golf R, its sights locked on BMW's 1 M - and it will have around 240kW to do the job.
According to the UK's Autocar, an unnamed source at AMG has said that "Something in the region of 320bhp is realistically possible with the technology at hand."
Unlike the 1 Series M's 250kW twin-turbo 3.0 litre six, the little AMG's power will reportedly come from a twin-turbo 2.0 litre four-cylinder engine - making it one of the most powerful production four-cylinder engines on the market.
The report adds that the AMG engine will send power to all four wheels through a six-speed dual-clutch transmission and a Haldex-style all-wheel-drive system, with a rear bias.
The new model will reportledy draw styling inspiration from the menacing lines of the F800 Style concept revealed at Geneva earlier this year.