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The Touareg was a joint project developed by Volkswagen and Porsche, who were also looking to add a luxury-type SUV to its lineup, as a cost-sharing initiative. The goal was to create an off-road vehicle that could handle like a sports car. The team, with over 300 people, was lead by Klaus-Gerhard Wolpert, and was based in Weissach im Tal, Germany. The result of the joint project is that the Porsche Cayenne shares the Touareg's Volkswagen Group 7L platform, although there are styling, equipment, and technical differences between the two vehicles.
The Volkswagen Touareg is built in Bratislava, Slovakia. The manufacturing plant shares production with Touareg-cousins, the Porsche Cayenne, and the Audi Q7. Due to the demand, and the exchange rates of euros against the US dollar, as well as different pricing and environmental policies in the USA, the V6 and V8 engine variants make up most of Volkswagen's American Touareg offering. However, a limited number of the V10 TDI diesel were available in the 2004 model year (before being pulled for environmental reasons). They were brought back to the United States for the 2006 and 2007 model years. As a result of their rarity and options, the V10 model's sticker price often exceeded $60,000 (£30,398.28).