Martin Winterkorn, the new boss at Volkswagen, told the German newspaper Sueddeutsche Zeitung that he had proposed the "design and development of a new, very small, model below the Fox." According to a translation from the folks at Car und Driver, the car will be an "economical, everyday small car that looks attractive and is affordable" and will have "space for four people plus luggage," unlike the DCX Smart it will compete with. Keep in mind...
...this comes right after VW solidified plans for its diesel sipping BlueMotion Polo (which can drive from Britain to the south coast of France on one tank). Maybe it's a pipe dream, but with the probable high cost of importing this sub-Fox auto wouldn't it be easier to justify the expense by mating it to an uber-efficient BlueMotion diesel? We're just saying.
VW Plans New Compact Car - Daily Auto Insider [Car and Driver]
Go Blue! Volkswagen's Diesel-Sipping Polo Gets 72 mpg [internal]