VOLKSWAGEN AND PORSCHE will cooperate on a super-luxury sport-utility.
Sources in Geneva said each company will sell a car based on the platform, starting in 2002. The two models are expected to vary significantly.
Volkswagen's luxury off-roader version is known internally as the MAV (multi-activity vehicle). At least one version will be powered by VW's new W-12 engine. Prices are expected to start at DM80,000 ($44,000).
Porsche's version, code-named E1, will be closer to a sports car than a sport-utility, sources said. They said that Porsche will invest DM1 billion ($550 million) in the project.
The production location has not been decided, although VW plants in Hannover and Bratislava are under consideration.
Executives of the two companies will meet in late March to fix final details of the project and sign the contract.