Audi to engineer next Porsche Cayenne

Audi will develop the Volkswagen Group's Porsche Cayenne, VW Touareg and Audi Q7 large SUVs in the future.

Currently, Porsche has responsibility for engineering the three models, which share the same underpinnings.

The decision to transfer development to Audi comes after Porsche was chosen instead of Audi to be the lead developer for large luxury sedans and sports cars within VW Group.

An Audi spokesman confirmed to Automotive News Europe German press reports that Audi will be responsible for developing the platforms of large SUV model lines within VW. 

"This decision was made in agreement with all of the brands involved and will create synergies throughout the group to the benefit of both the brand and the customers," the spokesman said.

A Porsche spokesman said: "This is not badge engineering. Porsche will be responsible for the engines and performance of the next Cayenne. It will drive like a Porsche and perform like a Porsche."

Audi will also develop Porsche's new small SUV, code-named Cajun, which will share its underbody with the Audi Q5, the Porsche spokesman said.

VW bosses hope the change will end a conflict over development responsibilities between the Audi and Porsche brands that has been ongoing since VW Group announced its plan to integrate Porsche as its 10th brand, according to the Financial Times Deutschland.

It will be several years before an Audi-engineered Porsche Cayenne reaches showrooms. The second-generation Cayenne went on sale earlier this year. A new-generation Volkswagen Touareg was also introduced this year.

The next Audi Q7 is due to go on sale in two years and its development is almost complete. 

VW has picked Porsche to develop the group's so-called "modular standard matrix" that will underpin the Porsche Panamera and future Bentleys. It will also be responsible for a sports car platform for front-mid- and rear-mid-engine cars for Porsche, Audi and Lamborghini.

Audi will continue to have responsibility for developing VW Group's so-called "modular longitudinal matrix," which was introduced in 2007 and underpins cars such as the Audi A4, A5 and Q5. 

VW brand is developing the “modular transverse matrix,” which debuts on the Audi A3 in 2012 and will eventually underpin about 40 models and 6 million units annually, including the next VW Golf.

VW is merging Porsche into its brand portfolio after VW acquired 49.9 percent of Porsche's car-making unit after Porsche last year failed in a hostile takeover attempt for VW.

New Volvo S60

Concept car previewing 2010 S60 saloon replacement

Volvo has revealed pictures of its S60 saloon concept. The car which will appear at the January 2009 Detroit motor show and give major hints as to what to expect from the 2010 S60, which is only the second version of the saloon - the outgoing car will be a decade old by the time it is superceded.

It has remained on sale virtually unchanged thanks to its well proportioned looks but also due to Volvo pushing funds towards developing a more expansive range - including a new S40, V70, the C30 hatchback/coupe and the all-new XC60 SUV. The bigger XC90 will also be over ten years old by the time it is replaced as the brand concentrates on developing the new S60.

If it looks anything like this concept, Volvo will be onto a winner. Although the suicide rear doors are destined to be lost, the four-door coupe looks, in the same vein as the VW Passat CC, would be sure to stand out alongside more traditional saloon rivals such as the BMW 3-series and Audi A4.

The lines that sweep from the headlights to the back of the car are inspired by Swedish coastlines, apparently, while Volvo says the car will deliver a sporty drive like no other Volvo before. Fingers crossed...

VW's Seat brand will launch the Exeo

Seat's new upper-medium car will be called the Exeo.

Seat, Volkswagen's Spanish brand, will launch sales of the Exeo early next year. It will be a competitor to the Ford Mondeo, Renault Laguna and Peugeot 407.

Based on an Audi A4 platform, the Exeo will be built in Seat's factory in Martorell, near Barcelona, Spain.

The Exeo will have sedan and station wagon versions
Seat says it took the name Exeo from the Latin word exire, which means to go beyond or to go further in English.

Seat said the Exeo will not replace its Toledo model.