Volkswagen expects to begin limited production by 2010 of a 1-litre car, also know as the 1L. It is a two-person car designed to travel 235 miles per US gallon. To achieve such economy, it is made from lightweight materials; the body is streamlined; and the engine and transmission are designed and tuned for economy.

For aerodynamics, the car seats two in tandem, rather than side-by-side. There are no rear view mirrors and it instead uses cameras and electronic displays. The rear wheels are close together to allow a streamlined body. The drag coefficient is 0.159, compared to 0.30 for typical cars.

For light weight, the car uses an unpainted carbon fiber skin over a magnesium subframe. Individual components have been designed for low weight, including engine, transmission, suspension, wheels (carbon fiber), brakes (aluminium), hubs (titanium), bearings (ceramic), interior, and so on. Empty vehicle weight is only 650 lb.

The engine is a 299 cc diesel producing just 8.5 hp. It drives through a six-speed transmission that combines stick-shift mechanics, weight, and drive efficiency with automatic convenience and efficiency controls. The engine is switched off automatically during deceleration and stops. According to Volkswagen, fuel economy is 238 mpg US, 285 mpg Imperial. A 1.7 gallons tank gives a driving range of 400 miles. If diesel were $4 a gallon, it would cost a little over $6.65 to travel 400 miles.

The body and frame are designed with crush zones and roll-over protection, and the tandem seating means large side crush zones, and Volkswagen claims protection comparable to a GT racing car.