Volkswagen chairman Ferdinand Piech revealed last month his desire to expand the carmaker’s operations into the motorbike industry, telling German media that he regretted not acquiring the Ducati label during the 1980s when it was near bankruptcy. Piech’s dream could soon come true as latest reports claim VW is about to produce its first-ever motorbike.

Volkswagen is rumored to be in negotiations with Austrian motorbike manufacturer KTM over a deal to produce VW branded motorbikes and three-wheelers. According to AutoExpress, VW is planning to revive its stillborn GX-3 project (pictured) as well as develop a range of motorbikes to compete with BMW’s Motorrad subsidiary. The carbon-fiber specialists at KTM could even help VW engineer a production version of its 1-liter concept.

The GX-3 was an official concept vehicle that was displayed back at the 2006 Los Angeles Auto Show. Designed together with KTM, the concept featured a 2.0L turbocharged engine sourced from the Audi TT and would eventually go on to inspire the Austrian motorbike manufacture to build its own X-Bow roadster. VW dropped plans to further develop the GX-3 due to the legal hurdles of producing and selling such vehicle.

KTM X-Bow ‘Dallara Series'