Audi has already confirmed a dedicated electric-car model for 2011. The vehicle will be a new city car that will be based on Volkswagen’s Up! Concept lineup but has a lot of Audi styling and charisma.

Previous reports suggested that the car will be based on the platform of the Audi A1. However, executives have killed that speculation saying that the car will share the platform with the new V-Dub Up! and will compete against Lexus’ upcoming dedicated hybrid.

According to AutoExpress, Volkswagen engineers are working on a two 600cc two-cylinder turbocharged unit. One will be a diesel unit while the other will be a gasoline that will most likely make its way to the U.S. A 1.2L 3-cylinder engine is also being considered. Fuel-economy is expected to come in around 79 mpg.

Source: AutoExpress