Volkwagen Up Will be Priced Around EUR10,000

Volkswagen plans to unveil a near production version of its Up minicar at the Frankfurt Auto Show in September 2011. The first variant of the new lineup will be a four-seat, three-door model, powered by a range of three-cylinder petrol and diesel engines, according to sources from Volkswagen cited by Automotive News Europe.

Production is expected to begin next year at VW's factory in Bratislava, Slovakia. The new minicar will begin deliveries in late 2011 with a base price of 10,000 (about US $14,000).

"The final prototype phase is currently taking place for the Up," stated VW's development chief Ulrich Hackenberg for Automobilwoche. "So we will be able to start building near-production cars soon."

The Up range will also include a five-door version, with an electric version slated for 2013, coinciding with the launch of the electric Golf and Jetta. The Up will be offered with traditional manual transmissions, as well as a dual-clutch gearbox that will be added later on.

During the development stage, VW pondered using a rear-mounted engine in the Up, but decided on a front-mounted engine to cut down costs. Using this layout means that VW the Up can share its power units with the larger Polo subcompact.

Rumors of VW considering a two-cylinder engine similar to the one in the Fiat 500 were dismissed by the company. "That is a beautiful engine as well," said Hackenberg of Fiat's powerplant.

“Improvements can now only be made in performance and economy, not in making the engines any smaller. Instead, the Up will make use of three-cylinder engines that will really advance the technology and make strong use of it,” he added.