The oil prices will definitely rise again. If this continues, more and more people will prefer small cars to spend lesser costs on fuel. Although, VW has never tried the competition in the subcompact part of US, it is worth a try since they also offer the same feature: fuel efficiency.

VW is well aware of the fact that their cars are influenced by the European heritage. But they’re not sitting down on this matter as they’re on their way to upgrading their models to better suit the new market in the US.

There’s no definite date yet as to the launching of the unit in US. They’re still looking at testing the American market by getting their reactions during the auto shows that will take place early this year. It’s better to test the waters even before dipping in.

This will be a good marketing move if ever. It will not only double the sales they have in US. It might enable them to triple their sales in the said country. Their goal is to basically introduce the right products to the market that is in the middle of a recession.

It’s good that a lot of companies, like VW, are considering the state of the buyers. Well, they better do or else they too will go down like the macro picture we’re seeing now.

The production of the Up strengthens the market presence of VW on the small car race together with the planned release of the new version of Polo early 2009.

The car manufacturer utilizes the platform of the New Small Family template for front engine small vehicles. This idea also saves the companies hundreds of millions of dollars.

The Chico brand of VW, used in the early 1990’s for their small concept car, may be revived for the new release. The new city car will have a lower roof line contrasted to the tall architecture of the Up.

The new design of the VW small city car will provide better aerodynamics resulting to less drag when cruising on the road. The car will follow the exterior lines of the Up and will have enough inside space for two adults and some luggage.

VW puts a 1.2L 4-cylinder engine using direct injection and capable of cylinder deactivation under the hood of this new car. There are also plans to install 1.2 liter diesel engine running on 3 cylinders. The designers of VW aim to give it a fuel rating of 117 miles per gallon for the diesel version.

According to VW officials, they are also planning to build an electric version of the new Smart competitor maximizing the technology from Toshiba. Prototypes of this vehicle are currently being developed in a facility in Isenbuettel Germany.

There is no official word when this VW small car will hit the streets of the US.