You know, I think Volkswagen's onto something here. After decades of producing well-made front-drive, front-engine small cars like the Rabbit, Golf and Jetta, it looks as  | | "Cute" doesn't do VW's new up! justice. (Photo: Trevor Hofmann, American Auto Press) | German brand is going back to its roots in more ways than just engine placement ... its next city car will also be cheap to build and buy.
Yes, the all-new up! Concept, a forerunner to something expected to be very similar in production trim, puts its tiny little engine over the rear axle, not unlike the car that made VW a household name back in the '50s and '60s and simultaneously transformed the words Beetle and Bug from hideous insects into synonyms for cute and cuddly.
The up! might not be as transformational to its small car segment as the Beetle was in a post-war Europe on the rebuild and a buoyant North American economy looking for another car to fill its double garages, but to Volkswagen's fortunes it could prove critical. The new CEO of VW America, Stefan  | | Is this what VW needs to win back the entry-level buyer? (Photo: Trevor Hofmann, American Auto Press) | Jacoby, plans to expand North American sales from 235,140 units in 2006 to a stellar 800,000 by 2018. In emerging markets, such as India and China a new city car could achieve even greater impact, especially considering VW is on target for a 12 percent gain over 2006 sales to more than 800,000 units in 2007.
The tiny, 135.8-inch, rear-engine, rear-wheel drive up! can seat up to four passengers comfortably, something I experienced personally during a pre-launch soirée on the eve of the Frankfurt auto show. It's also a really nicely laid out interior, with attractive, high-quality surfaces and a nice Beetle-esque touch, body color panels inside. Some untraditional components include an 8-inch LCD display in place of the instrument cluster, which incorporates all of the usual information as well as a navigation system and a carbon dioxide meter.
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