Last week AutoCar launched the first rumor according to whom the next Volkswagen Up! will be a FWD model. Today Volkswagen confirmed those rumors and also announced that the production will be delayed by up to five months.

Volkswagen plans to sell at least 500,000 Up variants a year in Europe, emerging markets, and possibly in the US. The car's launch was scheduled for 2010 but will now be delayed by three to five months until early 2011 because of the engine layout change.

The delay means that the Up will come to market much later than rivals planned by Toyota and Fiat. Toyota's IQ goes on sale in Europe early next year. The Fiat Topolino launches at the end of 2009. Both will have their engines in the front.

Volkswagen plans to build hatchback, minivan and sedan versions of the Up for the Volkswagen , Skoda and Seat brands in a range it code-names New Small Family.

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