Despite choosing another distinctively horrible name VW has the idea spot on by ramping up the city car to get ready for production in 2011.  The city car came from the UP! line of concept cars which was considered tiny when it debuted in 2007, but with theincreased trend towards small cars such as the Smart Fortwo or Toyotas upcoming iQ it's in the works.

VW will introduce the "Chico" as a class-leading 141mpg and emit less than 60g/km of CO2.  The diesel variety is a three-cylinder, common-rail design to be introduced in next year's VW Polo but surrounded by other energy conserving extras such as excellent aerodynamics, stop-start tech, and very low rolling resistance tires.

It's said that the new mini-car name Chico ("little" en espanol), comes from a name used for a VW concept car from 1991.

http://www.leftlanenews.com/vw-fast-tracking-new-city-car-for-2011-launc...