Seat announced they will launch a new ultra-small city car by 2011 based on the forthcoming Volkswagen Up. Seat didn't announced a name for the future car, but they announced it will be a successor to the Arosa.

Seat plans to unveil expand the corporate portfolio to up to 40 models within the next decade, and the new car will be part of this dramatic model-range expansion. This plans also includes: the new Bolero saloon, based on the previous-generation Audi A4, and the forthcoming Tribu compact SUV.

The microcar will undercut the Volkswagen Up! in price – an impressive achievement considering VW’s stated aim of pricing the base Up! at around €6000 when it goes on sale in Europe.

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