THREE- to four-year targets of selling 180,000 cars in the UK will be partly achieved by the expansion of Volkswagen into the luxury and 4x4 sectors of the market. However, it will also be achieved with the continuous introduction of new engine technology - both petrol and diesel - prior to the manufacturer joining the fuel cell revolution.

Late next year Volkswagen will launch the D1 into the luxury market with sales expected to be about 1,000 units in the UK. Diesel-engined models are expected to account for 35-40% of D1 sales and Volkswagen director Paul Willis claimed: 'Diesel will be an outstanding proposition in the luxury sector because it offers performance combined with improved economy over petrol engines and together that will protect residual values.'

About the same time the company's 'multi-activity cruiser', which shares technology with Porsche where the vehicle will be called the Cayenne, will also enter showrooms with sales expected to top 4,000 units, of which 70% will be diesel. The off-roader disguised as a luxury pick-up truck concept was first seen at last year's North American International Auto Show in Detroit.