The first 340 design sketches were produced in 1970 at the Daf works in Holland and it was designated the P900. It was to be a 2 door saloon with coupe and estate variants powered by a 1.1 or 1.3 litre engine. At that time the owners of Daf were looking for a partner to help with production costs so had talks with Volvo, VW, Ford, Peugeot, Nissan, GM (Antwerp) and BMW. Volvo expressed great interest but knew that the US market was out of reach because of safety and emissions regulations. They were also unable to finance the project at that time.