The Porsche 914 or VW-Porsche 914 is a mid-engined

Mid-engine design

A mid-engine layout describes the placement of an automobile engine between the rear and front axles. Another term for this is mid-ship.-Benefits:The mid-engine layout is typically chosen for its relatively favorable weight distribution...

, targa-topped

Targa top

Targa top, targa for short, is a semi-convertible car body style with a removable roof section and a full width roll bar behind the seats. The term was first used on the 1966 Porsche 911 Targa, and it remains a registered trademark of Porsche AG....

 two-seat roadster designed, manufactured and marketed collaboratively by Volkswagen

Volkswagen

Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

 and Porsche

Porsche

Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....

 from 1969 to 1976.
By the late 1960s, both Volkswagen and Porsche were in need of new models; Porsche was looking for a replacement for their entry-level 912

Porsche 912

The Porsche 912 is a sports car that was manufactured by Porsche of Germany between 1965 and 1969 as their entry-level model. The 912 is a nimble-handling compact performance four-seat vehicle, delivering 90 SAE horsepower at 5800 rpm. It is capable of up to fuel economy. This combination is...

, and Volkswagen wanted a new range-topping sports coupe

Coupé

A coupé or coupe is a closed car body style , the precise definition of which varies from manufacturer to manufacturer, and over time...

 to replace the Karmann Ghia

Volkswagen Karmann Ghia

The Volkswagen Karmann Ghia is a 2+2 coupe and convertible marketed from 1955 to 1974 by Volkswagen – combining the chassis and mechanicals of the Type 1 , styling by Luigi Segre of the Italian carrozzeria Ghia, and hand-built bodywork by German coach-builder Karmann.The Karmann Ghia was...

. At the time, the majority of Volkswagen's developmental work was handled by Porsche, part of a setup that dated back to Porsche's founding; Volkswagen needed to contract out one last project to Porsche to fulfill the contract, and decided to make this that project.