At the European driving event for the Volkswagen Golf R, company representatives confirmed that they would be setting up a new performance orientated division, named the R division, to compete with other similar divisions such as the BMW M division and Mercedes's AMG.

R GmbH, a limited liability company, will be set up inside the Volkswagen factory in Wolfsburg, Germany. In addition to representing the sportiest models in the VW range, it will be an expanded version of the VW Individual programme, which currently offers sporty add-on accessories and styling components under the R-Line brand in Europe. The division will be officially confirmed at the Volkswagen presentation during the Geneva Motor Show in March.

The new company will sell the 266-horsepower Volkswagen Golf R, and the similarly-powered Volkswagen Scirocco R. The rumored Jetta R Sport would probably also be sold through the new company.

A few months ago, BMW announced a dedicated showroom for its M division offerings in Singapore. This is a concept that Volkswagen Centre Singapore may wish to emulate to further enhance the brand's image locally, following the introduction of the R division.