Volkswagen has announced that they will be setting up a new performance-oriented division for the company. The announcement was made at a European driving event for the Volkswagen Golf R.

Planned to compete with similar divisions at other automakers, an unnamed executive told Inside Line, “BMW has its M, Mercedes has AMG, and our sibling Audi has Quattro. This new R division will be our Quattro.”

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.  Some of these parts and accessories are currently available in North America through the VW GearStore, but it’s only a small portion of the entire catalogue.  It is not clear if the R-Line will be available worldwide.

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

The new division will be officially announced at the Volkswagen presentation during the Geneva Motor Show.