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Will Mercedes-Benz finally take on the Audi TT with an entry-level coupe?

A report coming out of England indicates Mercedes-Benz is preparing to finally introduce a small, entry-level coupe aimed squarely at the Audi TT and the BMW 2 Series.

Currently at the embryonic stage of development, the yet-unnamed coupe will ride on the second generation of the MFA platform that currently underpins the A-, B-, CLA-, and GLA-Class. It will boast a highly-aerodynamic design that will borrow styling cues such as a long hood and a fastback-like silhouette from the AMG GT (pictured), though its front overhang is expected to be noticeably longer in order to accommodate a transversally-mounted engine.

Like the TT, Mercedes’ rumored coupe will offer space for four occupants in a 2+2 configuration. The Stuttgart-based automaker is putting a big emphasis on day-to-day practicality so the coupe will offer no less than 12 cubic feet of trunk space with four passengers on board.

The coupe will be available with a long list of four-cylinder gasoline- and diesel-burning engines developed jointly by Mercedes and industrial partner Renault-Nissan. Front-wheel drive will come standard, and the next evolution of Mercedes’ 4Matic all-wheel drive system will be available at an extra cost on most models.

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A sport-focused AMG-tuned model will round out the lineup a little later in the production run. British magazine Autocar reports the AMG-badged model will be powered by a turbocharged 2.0-liter four-cylinder engine that will send up to 400 horsepower to all four wheels via a six-speed dual-clutch automatic transmission. The coupe will be able to reach 62 mph from a stop in 4.5 seconds and go on to a top speed of 155 mph.

If the rumor materializes, Mercedes’ upcoming TT-fighting coupe will likely bow as a thinly-veiled concept at a major auto show in 2017 or 2018. The production model will be introduced in 2019, meaning it will go sale across the nation as a 2020 model.