Volkswagen is pushing ahead with plans to boost the performance of its two-seat XL1 with a highly strung two-cylinder gas engine sourced from the Ducati 1199 Panigale superbike, high-ranking insiders at the German car maker have confirmed.

Speaking on the sidelines of the unveiling of the new e-Golf in Wolfsburg, Germany this week, Volkswagen's head of R & D Hans-Jakob Neusser revealed development of the Ducati-engined XL1 is well underway. “Yes, we are working on it internally. It is a special project,” he told Autoweek.

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