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Autobild reports that Volkswagen is working on a small MINI Cooper fighter, but what’s interesting is the car will supposedly use a rear engine, rear wheel drive layout, much like Volkswagen’s own timeless classic collectible, the Volkswagen Beetle. The Beetle’s new incarnation – the Volkswagen New Beetle – has departed from the classic’s RR layout, instead putting everything at the front.

This foray into a niche market of economical but fun and sporty cars could be Volkswagen’s attempt to tap into it’s full potential, which has not been realized, according to Volkswagen’s new CEO Martin Winterkorn.