As sales of the Volkswagen Karmann Ghia dropped, the VW company needed a new direction. A deal was struck with Porsche to produce a mid-engined sports car that would be sold through both Porsche and Volkswagen. The car would be built by Porsche, using the new Volkswagen 411 engine. A design studio named Gugelot Design GmbH was appointed to design the car. The square style was very different to anything Porsche or Volkswagen had produced before, and became the forerunner to the Triumph TR4, and the MGB. Though it was not the best in automotive styling, the lines were clean and contemporary and this car had remarkable handling and performance.