WOLFSBURG - Volkswagen is developing a coupe-style Passat that the automaker hopes will attract Mercedes-Benz customers.
The unnamed four-door sedan, internally code-named CC, will launch in early 2008. It will be assembled at VW's Emden factory in northern Germany.
Volkswagen hopes the Passat will compete against the Mercedes-Benz CLS four-door sedan.
The new Passat will be the third offshoot of VW's B6 production series. To save costs, it will take key modules from the Passat sedan and station wagon.
The Passat's base engines will be a 140hp diesel and a 150hp FSI gasoline engine. The model's top powertrain will be a 3.6-liter FSI engine with more than 280hp.
The base Mercedes CLS 350 is currently offered with 272hp and costs E56,028.
The Passat is expected to significantly beat the Mercedes on price, a VW insider says.