VW and Porsche enter the sport utility craze - International Trends - Brief Article

Sport utility drivers will soon have two more options thanks to German automakers Volkswagen AG and Porsche AG.

Both companies unveiled their newest creations to the public late last month at the Paris auto show. But the introduction of the Porsche Cayenne and Volkswagen Touareq have some people in the auto industry wondering if the industry really needs two more sport utilities.

The SUVs are set to compete in the luxury SUV segment alongside the BMW X5 and the Mercedes M-Class. The Touareq, which is named after an African tribe, is the less expensive of the two with prices expected at about $40,000. The Porsche version is substantially more expensive coming in at about $60,000 in its base version.

Porsche and VW developed the vehicles together and use a common platform. Porsche said its SUV would highlight performance like all of its other vehicles while VW said it would position Touareq in its growing luxury line-up.

Porsche offers two versions of a V-8--a 4.5L 350 hp naturally aspirated and 450 hp turboucharged. VW offers a 220 hp. V-6 and a diesel 313 hp. V-10.

Porsche expects to sell half its Cayennes in the U.S., while VW says it will sell 40,000 Touareqs a year on U.S. shores.

ANDREA WIELGAT is a Senior Editor of Automotive Industries

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