Volkswagen introduced the first V5 engine, though this engine is not a true twin-bank V engine, but rather a VR5, or staggered bank straight-5 engine, and therefore not a true V5. It does not have one cylinder bank with 2 cylinders and one with 3; rather, it has all 5 cylinders sharing a single bank. The engine is derived from the VR6, and is thus a staggered 5, and has much in common with Volkswagen's earlier straight 5 developed in the 1980s for the Passat and Audi Quattro.
Volkswagen's VR5 is a 2.3 litre gasoline engine descending directly from the older VR6 from which VW removed a cylinder creating the first block to use five cylinders in a V design. The first version, with 2.3 L capacity, was capable of 150 PS (148 hp/110 kW) and had a maximum torque of 209 N·m (154 lb·ft). It was introduced in the Passat in 1997, and later in the Golf, Bora (aka Jetta) and the Spanish Seat Toledo (Typ 1M) in 1999. In 2000 the head was updated with twin cams, and was equipped with 20 variable timed valves thus raising power to 170 bhp (127 kW; 172 PS).