Bentley to Build Ultra-Luxury SUV

Volkswagen AG's supervisory board has approved a proposal by its Bentley Motors unit to develop its own SUV, according to Handelsblatt, which cites board sources.

The German newspaper says the project, code named Falcon, will create an ultra-luxury crossover likely to be priced at about €200,000 and sold worldwide. The vehicle is expected in 2015.

Bentley has been hinting about the new model since it unveiled a prototype SUV, the EXP 9 F, at the Geneva auto show a year ago. That design was widely criticized at the time. Bentley has since indicated that the production crossover will more closely resemble the brand's luxury sedans and coupes.

The EXP 9 F was powered by VW's 6.0-liter W-12 gasoline engine. Bentley says it continues to consider that powerplant along with a more likely 4.0-liter twin-turbocharged V-8. Last year the company said it also was evaluating a plug-in hybrid that would use a V-6 engine.

Last year Bentley predicted it could sell about 3,000 SUVs per year. Handelsblatt says the company is now targeting annual sales of 5,000 units. The marque's highest-volume year was 2007, when sales reached 10,000 vehicles. More than one-third of Bentley's buyers are in China.