Originally shown as a rear-engine concept at the 2007 Frankfurt motor show, the Up, sized below the Polo subcompact, will use a more conventional chassis layout. Although the rear-engine application supposedly facilitated a minivan variant (much like the Space Up shown at the 2007 Los Angeles show), it proved impractical and expensive for a sedan derivative.
The delay may cost Volkswagen some sales; Toyota's iQ and a Fiat competitor are expected to go on sale in 2009. Even so, the automaker thinks it's feasible to sell 500,000 Ups each year.
Source: Automotive News