Volkswagen has announced plans for an affordable, mid-engined coupe and roadster. The new model is a part of Volkswagen's ambitious target of selling over five million cars a year by 2018.

A concept version of the two-seater will be revealed in November at the Los Angeles Auto Show, while the production version could be in showrooms as early as 2011.

It will be powered by a wide range of mid-mounted four-cylinder petrol engines, with Volkswagen’s 168bhp 1.4-litre TSI petrol engine and a new 125bhp 1.6-litre TDI common-rail diesel both being considered for use.

Anticipate a production version weighing in at under 1000kg, and being capable of combining Golf GTI levels of performance – 0-62mph in just under 7 seconds – with economy to rival a diesel Polo – about 63mpg combined.

The new model is a cut-priced alternative to the Lotus Elise.

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