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.