This otherwise contemporary three-door hatchback points the way to an affordable entry-level model that VW intends to sell worldwide beginning in 2010. The up! is part of Volkswagen's corporate attempt to get back to its roots after its recent foray into the luxury-car segment, an effort to concentrate its efforts once again on the production of models with broad customer appeal and volume production possibilities.
Back to the Future
By opting for an unfashionable rear-engine/rear-wheel-drive layout for its latest small car, Volkswagen is seeking to achieve dramatically reduced production costs. Surprisingly enough, VW is also anticipating a clear advantage in space-efficient packaging over the small-car competition, the majority of which rely on a more conventional front-engine/front-wheel-drive layout.
This change in packaging philosophy is not without precedent. The small, two-seat Smart due to go on sale in North America later this year is also based upon a rear-engine/rear-wheel-drive design, and this connection has led to rumors that Mercedes-Benz (Smart's parent company) might be interested in seeking a cooperative agreement with Volkswagen on the development of a new small-car platform.
Walter Takes Over
The VW up! is one of the first Volkswagens styled under the direction of Walter de'Silva, the Italian-born designer who started his career at Fiat and has been moving upward through the ranks at Audi and Volkswagen.
Like one of the classic small cars from Fiat's past, the up! looks thoroughly modern, and its clean, uncluttered looks should appeal to buyers in a way that cuts across all demographic barriers, thus ensuring enduring appeal. The car isn't above some elements of self-indulgent fun, as there's a VW badge behind the big glass rear hatch that lights up when the exterior lights are turned on.
The up! measures 135.8 inches overall, and it's 15.0 inches shorter and 1.2 inches narrower than the Brazilian-built VW Fox. Despite these compact dimensions, Volkswagen claims the up! delivers class-leading interior space. Because the car has its engine and ancillary components located far to the rear, Wolfsburg's latest concept provides accommodation for four adults within a very compact wheelbase. This layout was developed in the early 1930s for similar reasons of space efficiency, and Dr. Ferdinand Porsche downsized the concept for what became the VW Beetle.
The interior design blends with that of the exterior thanks to a simple yet attractive look enhanced by a touchscreen monitor that provides access to all minor controls.
City Car, World Car
Volkswagen Chairman Martin Winterkorn says the upcoming production version of the up! is being developed in two distinctly different models. There will be an upbeat city car for thriving metropolises and a low-cost variant for emerging markets. He also hints that the up! could eventually be sold under the Volkswagen, Seat and Skoda brands as part of a concerted three-pronged attack on the small-car market all across Europe.
Though VW officials restricted their remarks to this three-door hatchback, Wolfsburg insiders tell us that other body styles are also being planned. At the 2007 Tokyo Auto Show and 2007 Los Angeles Auto Show, Volkswagen will reveal further takes on the new car, which is referred to internally under the name "New Small Family."
Volkswagen is remaining characteristically tight-lipped on the mechanical specification of the up! It tells us only that the car could "conceivably run all facets of technology."
Nevertheless, we can confirm that VW is already well advanced on a range of small-displacement TSI "twin-charger" engines that combine a supercharger for low-rpm boost with a turbocharger for high-rpm efficiency. Among them are three-cylinder and two-cylinder units — the latter of which is claimed to be returning fuel consumption figures of 94 mpg on the European fuel-mileage cycle in early road-going tests.
Can a Small Car Make Big Money?
VW executives also confirm that the company is studying various concepts for a plug-in electric hybrid, although they admit the costs of applying such technology to a car like the up! might ultimately prove too expensive to be workable in a small car.
In any case, Martin Winterkorn has regularly told the German media in recent weeks that the business case for the up! is strong, and he insists this future entry-level model will make money. — Andreas Stahl, Contributor

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