Word out of Wolfsburg is that a second Beetle could be on the way as well, but this one would be based off the up! minicar. That would give VW a sub-brand Beetle lineup, kind of like what Toyota has with Scion, but with an eye on MINI buyers. The smaller up!-based Beetle would also be more true to the original Bug, which was a cheap and efficient "People's Car" with the engine out back (supposedly). Quality problems and a weak dollar have lead VW to struggle in the U.S. over the past few years, but an inexpensive, reliable car with top-notch fuel economy would go a long way toward reversing that trend.
[Source: Motor Trend]