According to VW insiders the company is hard at work on a rear-engine, water-cooled small car. The car supposedly mimics the layout and purpose of the original Beetle.
According to Automobile Magazine, the new small car will have the engine placed above the transaxle and the radiator will be in the nose of the car. There will be three wheelbase options and two body styles. But out of those variations only two of them will make it to the US: a 130-inch long Beetle reincarnation that will compete with the Smart ForTwo and a small four door notchback that will be smaller than the current Jetta. Pricing should be in the $10,000-$14,000 range.
Other details are that the small cars will not offer power steering, but will offer ABS, stability control, satellite navigation, and a sunroof. Developing (third-world) countries will get a two-cylinder engine and the U.S. will make due with a turbocharged three-cylinder.
An intro date has not been announced. It will be interesting to see if the car succeeds in the U.S. A three-cylinder rear engine and no power steering may not resonate with the U.S. population.
Full Story: Automobile Magazine