Everyone is saying that the new BMW 3 and 5 Series are extremely competent cars, but while certainly better than their predecessors, they do not move on the game for luxury automobiles in their respective categories.

Audi in the meantime, is pulling out the stops to cement is technology credentials. I am hearing extremely interesting stories about the next generation chassis for the B8 A4. Essentially this platform will form the basis for both the next A4 and A6 models and will be exclusive to Audi, i.e. Volkswagens will not use it. That means both models are likely to grow in size. Improving rear-passenger space for both cars has to be a priority, if Lexus is anything to go by.

More important than leg room is driving dynamics. All Audis will be designed with Quattro in mind, but will have the engine mounted behind the front axle. As reported elsewhere, this will vastly improve weight balance and thus handling characteristics, especially for hard-core performance Quattro models. The really impressive feature in the engineering is likely to be the transmission. Both Quattro and non-Quattro versions will have drive channelled to the front wheels via a highly sophisticated mechanism that has an advanced forward mounted transmission shaft mounted underneath and to one side of the engine. It does not add weight over and above the current system.

Prototypes are already being tested and by all accounts the performance is electrifying: all of the advantages of a rear-wheel drive car and very few of the disadvantages of a front wheel drive car. Early reports indicate that the handling is just about as perfectly neutral as you can get. In Quattro models, you will get very gentle oversteer breakaway when the limits are exceeded and this is very easily recoverable = real fun to drive and fantastic 4 wheel drifts are entirely possible. With Front wheel drive versions, it will be all but impossible to unseat the car and you get the opposite: very gentle understeer easily corrected by backing off: grandma won't get freaked out when the driveway is covered in sheet ice.

The other big news is the styling. Now that the new face of Audi has debuted on all models across the range and everyone has got used to the idea of a squarer shield grille, the challenge is to shrink it so that it looks more integrated when applied across all models. A smaller size makes the front end look more rounded and thus much more futuristic and stylish. Imagine more graceful lines from the A6 stretching back in a long V from the grille to the flanks. It really moves things on. Haven't seen it myself yet, but we can expect to start seeing CGIs towards the end of the year, if not sooner.

I expect Audi to make announcement about the new chassis by Franfurt in September. The new B8 arrives in 2007, just as final deliveries of the RS4 are completed.

Interestingly, the B8 A4 could be the last petrol engined Audi A4.