The current European VW Fox
Volkswagen's smallest current model in Europe is the four seat hatchback Fox. At 12.55 ft long, the Fox is nearly half again as long as the Smart ForTwo. Since Volkswagen flamed out in it's bid to take on Mercedes in the upper reaches of the market, new boss Martin Winterkorn has deemed that VW should instead challenge the popular two-seat ForTwo. In an interview with German newspaper Sueddeutsche Zeitung he revealed that he has instructed the product team in Wolfsburg to develop a new car below the Fox. Unlike the Smart, the new VeeDub would be a four-seater, although it is unclear how a car smaller than the Fox would be able to carry four people unless it is unusually tall. In the same interview, Winterkorn indicated that they would definitely be developing hybrid drive-trains for their compact cars like the Golf and Polo.
[Source: Detroit News]