Following an old tradition started with the original Volkswagen Beetle, the Up is a rear-engine, four-seat, three-door concept and Volkswagen CEO Martin Winterkorn was happy to announce the Up is a "real Volkswagen."
There is a good chance the Up is the first of a variety of new models set for production. VW hopes to take on the Toyota Yaris and the ever popular Suzuki swift. Possible variants include a four-door, a small wagon and a convertible.
Measuring a tiny 3,450mm in length and 1,630mm in width, the Up is capable of carrying four passengers. So far rumours flying around suggest a small turbo charged engine might be the power plant. Perhaps Volkswagen will even fit the 1.4-litre twin-charged engine from the Golf GT?
Don't start cleaning the garage just yet, the Up won't be available till 2011 at the earliest.