Volkswagen has announced that the 2012 VW R20 will have a 256-hp version of the 2.0-liter turbocharged four-cylinder engine currently found in the VW GTI and GLI. The 2012 VW R20 will only be available with a six-speed manual transmission and all-wheel drive. The 2008 R32 was only available with an automatic transmission.

Volkswagen says that the 2012 VW R32, which will weigh about 3,300 pounds, will accelerate from 0-62-mph in about 5.7 seconds, according to Autoblog. The European version of the 2012 R20 will get 270-hp, which would make it a little bit more competitive with the other sports cars in the $30,000 range.

Volkswagen really needs to step up its game if it plans to sell many R20 models. When the R32 first went on sale in 2004, its main competition was from the Mitsubishi Evo and Subaru STI. At that time, the R32 was underpowered compared to its Japanese rivals, but made up for that by having the most comfortable interior and a smooth V6 that made lots of torque for easy acceleration and driveability. Now, the STI and Evo have become more comfortable and more powerful, fixing their weaknesses, while the R has lost its V6 and not gained enough power to compete.

The R32 also has to compete with the Ford Mustang for buyers, since anyone spending $30,000 on a sports car will at least briefly consider the seminal American muscle car. Since 2004, the Ford Mustang GT has been upgraded from a 260-hp V8, which the 240-horsepower 2004 R32 could compete with, to a 412-hp V8. That’s a gain of 152 horsepower in seven years, compared to the R32, which will gain just 16 horsepower in eight years.

Image via Autoblog.