VW to launch performance unit

The Wolfsburg headquarters of the brand are readying a new-look performance division to be officially announced at next month's Geneva Motor Show.  Although no official details have been released, the new group is expected to be called R GmbH or R line.

The bold R venture is a clear sign that VW AG wants a bigger slice of the high-performance sports market dominated by BMW M, Audi S and the Mercedes-Benz AMG divisions.  Apart from engine modifications to lift power and torque, cars will get specific alloys, suspension and other handling options as well as distinctive styling cues.

The new project is expected to work alongside the niche low-volume VW Individual group.  VW Individual most recently released the Eos White Night model for Australia.The current R line-up consists of just four models, the Scirocco, Golf, Touareg and Passat.

However, VW Individual showed off a Passat CCR show car at last year's Frankfurt Motor Show and has its eye on several other models in the VW family, including the Amarok ute.  The next-generation Jetta and Eos are other likely R candidates.

Volkswagen Individual product management chief of the Golf R, Marcel Dalgado, would not be drawn on whether Individual would morph into a new performance division.  "Would I like to see something like that? Of course, yes," he says.

"But we have other challenges."  Currently Individual employs about 350 people, mostly engineers.  "It is a small company and the team is small yet very reactive to new challenges," Dalgado says.

When it does go public with the R division, VW is also tipped to announce more jobs.  Individual is currently working on an updated go-fast Golf GTi 30 Edition, which could be sold under the R group.

Apart from special edition models like the GTi 30 Edition, the new business will also have aftermarket engine performance and R-line styling kits.  Although early days, VW executives say they want to deliver a performance R car in every model.  However, there is some internal debate whether a Polo R would have the necessary branding to benefit from an R badge.