AN elegant low-slung coupe packed with high technology features has revealed Volkswagen's ambitions for a share in Europe's fast-expanding market for luxury cars. Described simply as Concept D, the four-door prototype, which could cost more than £40,000, is providing Frankfurt International Motor Show visitors with the first glimpse of how the people's car maker is aiming to win business in the executive sector dominated by Mercedes-Benz and BMW.

'This is obviously much more than a concept. We all know that something based on the display model will become a reality in a couple of years,' VW UK head Robin Woolcock told Fleet NewsNet.

As group chairman Ferdinand Piech was unveiling the centrepiece of the VW stand, Woolcock said the company intended to make the coupe an attractive alternative to established saloons produced by its German rivals. 'It is being built to take on the likes of the S-class. Our chairman has always said that Volkswagen has the ability to supply everything from city cars to full-blown luxury transport and what we're looking at is his vision of how we will do it,' he said.

Asked if adding a D-sector car to the VW portfolio might create marketing problems for the brand, Woolcock said: 'In terms of making a comparison between Audi and VW, we see it as being no different than having the A4 and the Passat. These are entirely separate brands which are sold from separate outlets.'