HAMBURG - Volkswagen and Porsche want to define a new upper limit in the luxury sport-utility segment.
Their joint-venture sport-utility - code-named Colorado - will be based on an all-new platform being developed by Porsche. VW and Porsche versions will be separately styled and use separate, new engines. VW will build the cars.
An executive who drove one said the car is 'bigger than a Jeep Grand Cherokee.' Top executives of both companies took test drives in a prototype here last week. They were escorted by security guards to shield the car from cameras and the curious.
'It feels like a Panzer, big and powerful,' said a VW executive.
Both versions will go on sale in 2002. Sources say the Porsche will be priced at more than DM150,000 ($85,000) and VW's at under DM100,000.
Porsche plans to invest about DM1 billion in the project. Volkswagen did not reveal investment plans.
Annual production volume is expected to be around 100,000 - 80,000 for VW and 20,000 for Porsche.