Volkswagen is establishing a new division that will handle development and sales for all future models designated under the R performance label. The new division is simply called Volkswagen R and it will operate in a similar fashion to BMW’s own M Division, Mercedes-Benz's AMG and Audi's quattro.

Currently, Volkswagen R’s portfolio includes the 265 horsepower Scirocco R and the Golf R, the latter of which will be heading to the U.S., as well as the automaker’s R Line of design packages and Volkswagen Exclusive trim upgrades. In the near future, expect to see more high-performance R models, with cars like the Passat and Touareg also being handled by the division.

Volkswagen R is located in Warmenau near Volkswagen’s own headquarters in Wolfsburg, Germany and currently employs 350 people.