Almost 70 years after the launch of the first Beetle, Volkswagen unveiled its 2007 concept of a ‘peoples’ car’. Called up!, the rear-wheel drive, rear-engined four-seat car is likely to go into production.

According to Dr Ulrich Hackenberg, board member with responsibility for technical development, the Frankfurt Show is being used to gauge the public’s response to the car before a decision is made to go into production, most likely in Eastern Europe.

“My instinct is that this car will go into production,” Dr Hackenberg told MSN, saying that this would happen within the next three years if the decision was positive. He said the rear engine, rear-drive design was to maximise the interior space by allowing the wheels to be located in each ‘corner’.

The up! boasts more interior space that any other car with a similar length of just 3.45 metres, according to Volkswagen. The design is simple, uncluttered yet highly appealing. Like the exterior design, the interior blends utilitarian practicality with bold design flair. With the exception of the driver’s seat, all the seats can be folded flat providing a large space for storage.

The up! Has two central displays: an 8-inch monitor shows the driver key information such as speed, fuel level and range as well as CO2 emissions. In the centre of the instruments is a 7-inch monitor using touchscreen and proximity sensor technology to controlling functions such audio.

Volkswagen’s CEO Dr Martin Winterkorn unveiled a new ‘small brother of Touareg’ – a medium-sized sports utility vehicle offering the appearance and versatility of an SUV with a premium level of comfort and agility.

It has three trims, called Trend&Fun and Sports&Style with a front end designed with a maximum entry level of 18 degrees, and Track&Field with a 28 degree entry angle.

The model will be offered with five supercharged and turbocharged engines, all compliant with Euro-5 emissions standards. It will debut with a new 110kW / 150 PS TSI (with turbocharger and supercharger) and VW’s first four-cylinder common rail TDI providing 103 kW / 140 PS. Other TSI and TDI engines will be added to the range.

Equipment includes Park Assist and the latest radio-navigation (RNS 510) with an off-road navigation system. It comes with electronic stabilization program (ESP) and six airbags, and electronic climate control.