Last month we brought you a report that Volkswagen was developing a city car to challenge the Smart ForTwo. At the time it was reported that the new car would be smaller than the current Fox but would still be a four seater. Now Auto-Bild has rendering of what the new car look like. Like the Smart, the "Lupo II" would appear to be rear engined, but would be about 11.5 ft long. The base version would be stripped down, but all kinds of extra features would be incorporated via modular production techniques to keep the manufacturing cost down. Presumably, a diesel version will be available as well.

[Source: Auto-Bild]

In an earlier post, we brought you VW CEO Martin Winterkorn's response to critics, including the German President himself, that VW, along with the rest of the German auto manufacturers, are not doing enough to help the environment. It is not hard to see why some people feel this way, with VW owning Lamborghini, Bugatti and Audi, who recently released their new R8 sports car. VW is partly owned by Porsche, which does not have a long history of producing exceptionally fuel efficient cars either. As the interviewer points out, Audi, BMW and Mercedes have been in an ongoing race to produce the fastest, most powerful cars in each of their respective classes, and they do not appear to be slowing down any time soon.

So, what is VW to do? For one, they will release a hybrid model starting in 2008, according to Winterkorn. But, also of interest is another possibility that the CEO mentions in the article. Will VW release a turbocharged twin-cylinder car smaller and more affordable than their current small car, the Fox? Winterkorn says that they just may. Here are his own words:

Winterkorn: When I took this position here in Wolfsburg in January, the first thing I did was to launch the development of a very small model, smaller than the Fox. It will be economical, suitable for daily use and affordable. And it will also make do with smaller engines. Two-cylinder engines with turbochargers could be an option.

SPIEGEL: When might such a Volkswagen become available?

Winterkorn: We are thinking about 2009. The sooner the better. There is great demand for this type of car in Western Europe, where it can provide mobility in big cities. But there is also considerable demand for a small Volkswagen in the emerging markets. In Russia, India and China, for example, we need cars that sell for €5,000 or €6,000.

Intriguing, no? We've heard of this before (see related posts below), but how exactly will VW offer a car to compete with SMART? And what are the chances the car will make it to America? If the past is any indication, not very likely. But, I am anxious to hear any more information along this front.

Related:

• VW's hybrids, German cars and CO2 emissions, and follow-up on the new Fox
• VW to develop a challenger for the Smart ForTwo

[Source: Spiegel]

The current European VW Fox

Volkswagen's smallest current model in Europe is the four seat hatchback Fox. At 12.55 ft long, the Fox is nearly half again as long as the Smart ForTwo. Since Volkswagen flamed out in it's bid to take on Mercedes in the upper reaches of the market, new boss Martin Winterkorn has deemed that VW should instead challenge the popular two-seat ForTwo. In an interview with German newspaper Sueddeutsche Zeitung he revealed that he has instructed the product team in Wolfsburg to develop a new car below the Fox. Unlike the Smart, the new VeeDub would be a four-seater, although it is unclear how a car smaller than the Fox would be able to carry four people unless it is unusually tall. In the same interview, Winterkorn indicated that they would definitely be developing hybrid drive-trains for their compact cars like the Golf and Polo.

[Source: Detroit News]

Click on the photo for a high-res gallery of the Polo

The guys over at eGMCarTech are reporting that Volkswagen is considering launching the b-class Polo in the US market. If it does come over here it could launch sometime around 2010. The Polo is smaller than the Rabbit/Golf, and in fact a previous generation was sold in North American market in the late eighties as the VW Fox. The Fox was built and exported from Brazil, and was never very successful. As the price of existing VW models continues to climb, a small stylish modern car priced competitively with the Honda Fit and Toyota Yaris could do well here especially if they bring a BlueTec diesel variant. Something like the BlueMotion Polo would be even more efficient in real world terms than any of the hybrids on the market. In Europe, the Polo is available as a two or four door hatch, and also as the Outback-like CrossPolo.



[Source: eGMCarTech]