Volkswagen Up to Spawn Skoda Small Car

With its big plans of taking over the world by 2018, German manufacturer Volkswagen is thinking small. For about two years now, the world lives under the shadow of the soon to be production version Up, while this week, we've all learned about the highly efficient XL1 and VW's decision to built it.

These are only two of the small models with which Volkswagen and its huge portfolio of sub-brands is trying to overtake declining Toyota. And, as it usually happens with most of the platforms developed by the mother company, the sub-brands will surely tap into the new technologies for their own us.

Whereas there's no word yet on an XL1-based Skoda or Seat, things are entirely different when it comes to the Up. In the Volkwagen lineup, the UP will probably share the same platform with the future A2, but it will also be featured in the Skoda lineup as a new small car.

According to the Inside Line, the yet unnamed model will be a five-passenger three-door hatch, powered by two very small and not so powerful engines: a 1.0l gasoline which will develop 65 horsepower and a 1.2l diesel, good for 75 hp. An electric version of the model, a first for Skoda, is also in the works.

The low cost model (Inside Line says the price of the new model will be set at around EUR9,300) will hit the market in the first month of 2012. It will be sold in Europe mainly, but also in India, where Skoda enjoys a great deal of success.