The 924 had originally been a project of VW-Porsche, a joint Porsche/Volkswagen company incorporated to develop and produce the 914 which was sold in Europe badged as both a Porsche and a Volkswagen. In 1972, a replacement for the Volkswagen version of the 914, code named EA-425 began development. The model was to be sold as an Audi as part of the VW-Audi-Porsche marketing arrangement. Porsche was to manufacture its own version of the car.[3] At one point, Volkswagen head Rudolf Leidig declared the EX-425 was going to be a Volkswagen exclusively, thus denying Porsche's version of the 914's replacement. Although testing had begun in the Spring of 1974, Volkswagen cancelled the EX-425 program, the reason being significant financial losses due to declining sales and rising development costs for new vehicles as well as the departure of Leidig. The recently introduced Volkswagen Scirocco was expected to fill the sports coupé market segment and the unfinished project was handed over to Audi to serve as the replacement for the Audi 100.[