Volkswagen is planning a new compact car placed below the future Up citycar. According to Auto Motor Und Sport Volkswagen is working on expanding its range of small and economical vehicles. First will be a Smart Fortwo competitor. The new model will have enough space for two people and is going for an ambitious 117 mpg.

The future Smart’s competitor will be a FWD model based on a shortened platform of the Up. Under the hood there will be a 1.0-liter three-cylinder diesel with around 50 hp.

The exact launch date and the production one are not yet fixed.

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Source: Auto Motor Und Sport

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