Volkswagen unveiled a minicar concept at the 2007 Frankfurt Auto Show. The "up!" is being scheduled for production, and it is rumored that it will be on the market as early as 2010.
But...as small as the up! is, it is a big car by smart car standards -- so VW seems to be developing a city car version of the up!. According to Auto Motor und Sport, the new car will be positioned against the Smart ForTwo. The car will come with a front-wheel drive and will be based on a shortened version of the up! Power will come from a 1-liter diesel delivering 50 hp. Most likely an electric version will also be available with lithium-ion batteries with a range around 65 miles. And if it only comes with the diesel engine, then you should not worry about filling the tank too often as it will get 117.6 mpg (2l per 100 km).