Hot on the heels of news that AMG will launch a high-performance version of the next-generation Mercedes-Benz B-Class late next year comes a report claiming the tuning firm will also launch a hotted-up compact sedan.

The new compact sedan is already being called the ‘baby CLS’ and it’s expected to share a platform with the new 2012 Mercedes-Benz B-Class. Its styling will be derived from recently revealed F800 Style concept vehicle but its powertrain, at least in high-performance AMG trim, will be unique to the car.

Designed to take on the likes of the upcoming Audi RS3 and BMW 1-Series M car, the new AMG sedan will be positioned below the C63 and come powered by a newly developed supercharged 3.2-liter V-6. It won’t be an ordinary supercharged engine, however. According to Autocar, AMG will use an electrically operated pressure wave supercharger that could see output from the engine go as high as 400 horsepower.

The supercharging system essentially uses pressure waves from the exhaust gas to charge the intake air before sending it into the engine.

The platform underpinning the sedan--and the next-generation B-Class--will be front-wheel drive in standard trim but for the AMG version, an all-wheel drive system with a rear- biased power split will be installed.