New A5 will be launched in 2008 to rival the Merc CLK
The new coupe will be badged as the A5 and will share its underpinnings with the third generation A4 and VW's upcoming coupe.
However, the A5 will take a more upmarket stance than its VW sibling and will rival the Mercedes CLK and next BMW 3 Series coupe.
The A5's styling will be influenced by that of the Nuvolari and new Shooting Brake concept cars.
A soft-top cabriolet version with a canvas roof will replace the current A4 cabrio in 2008. The new A4 range will also be unveiled late in 2008.