Volkswagen is set to grow its portfolio of sporty models, having just formed a new subsidiary, Volkswagen R GmbH. Its purpose will be to create more-hard-core VWs, concoct exclusive equipment packages and models, and create one-off cars. Another subsidiary, Volkswagen Individual, will be closed, and its business taken over by R GmbH.

In Europe, almost all VW models are available with "R line" packages regardless of the engine under the hood. There’s no significant benefit to the modified body cladding that makes up the bulk of such packages; it’s purely aesthetic. Bear in mind, however, that VW makes some of the best-selling cars in Europe, and if there are 30 Golfs on your street, you might wish to set yourself apart from the pack a little.

For extra luxury, VW R will offer "Exclusive" trim levels in place of the current "Individual" program. Think chrome, large wheels, and two-tone leather seats. The level of workmanship is surprisingly high; some of the interiors created by Volkswagen Exclusive would look great in anything this side of a Bentley. As it happens, the "Exclusive" moniker also is used by VW Group cousins Audi and Porsche for similar programs.

Pumped-Up VeeDubs

Beyond the trim levels, "R" also will stand for the same things as Mercedes’ AMG or BMW’s M divisions, which means that besides body kits and wheels, a lot more power and performance are in order. For a glimpse of what VW has planned, look no further than the 265-hp Scirocco R or the 270-hp Golf R. Both models are strongly set apart from VW's regular lineup, and they are just the beginning. We expect an R version of the upcoming, face-lifted Passat, which could use a high-powered four-cylinder, VW’s VR6, or even a version of the 2.5-liter five-cylinder engine which makes 340 hp in the Audi TT RS.

Tuned diesel models are possible as well. The last-generation Touareg was available as an R50 model with a 350-hp V-10 TDI. Now that the V-10 engine is gone, the next Touareg R could have a high-powered V-8 TDI (a gasoline V-8 would also be a unique touch, as one is not currently part of the Touareg's portfolio). Future R models will only bear the R moniker without a number hinting at engine displacement. Clearly, VW feels that an "R" badge makes enough of a statement on its own.

Let's hope we will get some of those models over here as well. There are currently no firm plans to bring any of the R models to the U.S., including the Golf R.

The potential for one-offs are interesting, too. How about a Golf with the Audi TT RS engine—that mighty powerplant would easily fit under the Golf's hood. And we hear that some Phaeton Q-ships are roaming the autobahnen around Wolfsburg equipped with the twin-turbocharged W-12 taken directly from the Bentley Continental GT.

Volkswagen R GmbH is headquartered in Warmenau near Wolfsburg, and employs some 350 people. The guy in charge is Ulrich Riestenpatt Genannt Richter, formerly head of sales and marketing at Audi's Quattro GmbH. And that subsidiary, responsible for creating Audi's RS models, would seem to be a perfect role model for VW R.