Click above for high-res gallery of the VW up! Concept

In Fall of 2007, Volkswagen unveiled a series of three mini car concepts called the up!, Space up! and Space up! Blue. Apparently the German automaker has determined that the tiny "four seat" up! just isn't small enough and is planning an even smaller machine to take on the Smart ForTwo directly. The goal is to create a two-seater that can achieve a fuel consumption rating of 2 L/100 km or 117.6 mpg! According to Auto Motor und Sport, the smaller car will be based on the up! architecture with power coming from a 1.0L three-cylinder diesel making 50 hp. VW has been testing a two-cylinder engine, but is unlikely to go that route. A twin would have to work too hard to provide any mileage benefit, so the slightly larger engine is likely to find a home in the new car. The first of the up! models are expected to debut in 2010 with larger models, and now smaller ones, to follow. Thanks to Christian for the tip!

Related GalleryVW up!

[Source: Auto Motor und Sport via German Car Blog]