According to AutoExpress Hyundai's Kia brand is working up a new sports-car concept for this year's Frankfurt show that could go head to head with the Audi TT. It'll be a high-concept play, much like the KCV-III concept (shown) introduced in Frankfurt in 2003 :

Kia plans to topple TT
Korean firm Kia's incredible march upmarket continues - the company is secretly planning an Audi TT rival

By Mat Watson 15th March 2007

A concept version of the sports car will be unveiled at September's Frankfurt Motor Show, and could hit production by 2009. Kia's design head, Peter Schreyer, is behind the bold plans. He was responsible for the original TT, and wants to show his old bosses exactly what his current employer is capable of.

The new model has been codenamed Project Snowflake. This is a clear indication of Kia's ambition; the TT project under Schreyer was known within Audi as Raindrop!

"The name shows the link bet-ween the cars, but hints that ours will be even cooler," a Kia insider revealed. "It will shock the world when it's unveiled this autumn." As with the current TT, the newcomer will be front-wheel drive, although a 4x4 version won't be offered. It will use an all-new 2.0-litre turbo, which is being developed in conjunction with Hyundai and will also feature in a hot hatch version of the Cee'd.

"One thing missing from Kia's line-up is a sports car. This would fill that gap," the insider added. He also revealed that the firm was working on a new Ford Fiesta rival, which is expected in showrooms by 2009.