According to a recent report, Volkswagen is developing a high-end model to tackle the BMW 5-Series and Mercedes E-Class.

According to a recent report, Volkswagen is developing a high-end model to tackle the BMW 5-Series and Mercedes E-Class.

Details are limited but Auto Bild is reporting the model will slot below the Phaeton and be offered as a five-door hatchback and a wagon.

Nothing is official but the magazine says the company is considering basing the car on either the Audi A6 or the next-generation US-spec Passat. Engine options also remain a mystery but speculation suggests the model could be offered with four- and six-cylinder petrol and diesel options which could be backed up by an all-wheel drive system.

If everything pans out, the model could cost approximately €37,500 ($46,065) and be built in China, Mexico or the United States.

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