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Yes, Volkswagen had a mid-sized light duty work truck sold in Europe called the LT and that is where the 924/944 got the engine (it was 477 when it was a VW project). The whole 477 car was built with in stock parts. The suspension from the Super Beetle, the drive train from Audi (but their engine design fell through so the engine came from the truck) and all the other parts of the car were from the Rabbit/Bug. Almost everything on that car but the body were parts that were already designed from other cars.
Yes, the later the 944 the better, and the more 'Porsche' that it is because in mid-85 the majority of the VW parts on the car, including the engine, were designed and replaced with true Porsche components. The whole suspension was redesigned by Porsche as well as the dash and interior. Most Porsche people don't consider the 944 a true Porsche until 1986 and that is correct because the 924/944 (up to 85) was in fact a Volkswagen.
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