Volkswagen has decided that it will reenter the smart small-city car market with a car that will be a compact version of the ‘UP Concept’ drawn up by the company earlier. Insiders claim that this would be dubbed as the Volkswagen Chico and will be in lines similar to the Toyota iQ and Smart Fortwo. The car could be powered by a 1.2-liter 4-cylinder gasoline engine, a 1.2-liter 3-cylinedr diesel engine and even an electric version of the Chico is expected to toll out. The aerodynamic design and reduced drag of the ‘Chico’ will ensure greater fuel economy as figures of 117-141 mpg are being discussed for diesel-powered Chico. The Chico is expected to hit UK markets by 2011 at an anticipated price of £ 6000.