AMG - Reportedly developing an entry level performance saloon?

Automotive websites are once again abuzz with reports of AMG developing a super sports saloon based on the future generation B-Class. According to Autocar, this new entry level AMG offering will borrow styling cues from the Mercedes Benz F800 Style Concept which was unveiled at the 2010 Geneva Auto Show. Autocar has further said in its report that this new AMG will be powered by a new engine