In August 2004, Audi announced that the next-generation TT will be made of aluminum and would go into production in 2007. A TT concept (the Audi Shooting Brake) was shown at the Tokyo Motor Show in 2005. This concept featured angular styling and a “shooting brake” 2-door hatchback body style.
Audi revealed the second-generation TT on April 6, 2006. It is constructed of aluminum in the front and steel in the rear to enhance its balance and is available in front- or all-wheel drive. The production car uses of the 3.2 L V6 engine, with 250 PS (184 kW), as well as a 200 PS (147 kW) version of Audi’s direct injection 2.0 L four. A 6-speed manual transmission is standard, with the DSG as an option, and Quattro all wheel drive is standard with the V6. Audi’s new active suspension, Audi Magnetic Ride, will be available and is based on Delphi’s MagneRide. It will again be offered as a 2+2 coupÃ© with a roadster arriving in late 2007 as a 2008 model. A wagon version is rumored as well.
Also for 2008, a TT-S(S for Sport) and TT-RS(RS for Renn Sport in German, or Race Sport) are in the works, similar to the S4 and RS4 versions of the Audi A4. The TT-S will use a turbocharged 2.0 liter I-4 producing 280 horsepower, and the TT-RS will use a 2.5 liter 5-cylinder engine making 350 horsepower, both intended to compete with the BMW Z4, Nissan 350Z, and Porsche Cayman S.  An upgraded 4-cylinder TDI is also planned with output more than the current top-of-the-line 125 kW (170 hp) model.