German car maker Volkswagen will give its Polo city car a multi-million-dollar overhaul to create its most pint-sized hot hatch to date.
Plans for a Polo R were initially under a cloud because it required a major engineering rework to accommodate an all-wheel-drive system.
But Volkswagen has now confirmed it has given the green light to the performance car project. It will be a twin under the skin to a special edition all-wheel-drive Audi S1, with which VW will share development costs.
VW confirmed the plans for a Polo R at its annual GTI festival in Germany over the weekend, unveiling a World Rally show car.
No technical details have been released, however well placed sources told UK magazine What Car? the Polo R would most likely be powered by the 155kW turbocharged 2.0-litre four-cylinder engine from the Golf GTI.
This would give the Polo R the necessary grunt to handle the extra weight of the all-wheel-drive system – and provide the thrilling acceleration expected of a Volkswagen R car.
Importantly, VW will leave a small performance gap to the flagship Golf R which has a 188kW version of the same turbocharged 2.0-litre engine.