WOLFSBURG, Germany -- Volkswagen AG is developing a coupe-style Passat that the automaker hopes will attract Mercedes-Benz customers.
The unnamed four-door coupe, code-named the CC, will be launched in early 2008. It will be assembled at the Emden factory in northern Germany.
VW hopes the coupe will compete against the Mercedes-Benz CLS.
The base Mercedes CLS 500, powered by a 302-hp V-8, is priced at $65,675, including destination, in the United States. A VW executive said the Passat will beat the Mercedes significantly on price.
To hold down costs, VW will use key modules from the Passat sedan and station wagon.
The coupe's base engines will be a 140-hp diesel and a 150-hp gasoline engine, but a range-topping 3.6-liter, 280-hp engine will be available.
You may e-mail Henning Krogh at