VW and Porsche plan collaboration

It is rumoured that German supremo's Porsche and Volkswagen are set to work together to develop a series of new models.

A source cited in WhatCar? confirmed the deal, with the first project anticipated to be a compact Porsche Boxster and Audi R4. Speculation is also rife that the two companies will collaborate on a series of hybrid vehicles, pooling their design and technical knowledge to create world-beating eco friendly models. Combined with German quality and style any collaborative models would surely tempt buyers to sell a car for cash to put towards a Porsche/VW masterpiece.

A small Boxster would likely be named the Porsche 356 and could be available to car buyers by 2012. With a mid engine design and rear wheel drive, this new offering would maintain the Porsche feel, whilst being smaller and more affordable.

Sister car, the Audi R4 could offer the same layout but with a smaller turbo-charged 1.4 engine. Nevertheless, with its light body, the R4 would be a real sportscar rival performance-wise.

Porsche and VW completed a merger deal last year, but were working together on numerous projects before this deal was finalised, including a sharing of development on the Toureg and Cayenne models. It is reported that so far, collaborations have saved the companies a large proportion of their development costs, prompting further joint projects.

With a supercar company and one of the world's largest and most popular automobile manufacturers at the helm, joint models are sure to be a success.