Volkswagen will produces Chico in the near future

Volkswagen is reportedly kicking production of an all-new low-cost two-seat microcar into high gear in an attempt to get the Smart-fighting vehicle onto market before 2011. The car is powered by a 1.2L four cylinder engine gasoline engine and a 1.2L three cylinder common-rail diesel engine.

For the gasoline engine, it is come with a cylinder deactivation system. Fuel economy projections range from 117 to 141 mpg for the diesel. Efficiency will be further improved with regenerative braking, stop-start fuel shutoff systems, and low rolling resistance tires. The end result is a car that�ll return a hyper-thrifty 1.67 l/100km while emitting just 60 grams of CO2 per kilometre - all without a hybrid badge in sight.