Though struggling lately in the U.S., Volkswagen is determined to rebuild its business here with new models that are both tailored and priced to be more competitive in the world’s toughest market. All the more curious, then, that the first of these vehicles, the 2009 Tiguan compact SUV, got short shrift at VW’s L.A. Auto Show press gathering.

2007 L.A. Auto Show
2009 Volkswagen Tiguan

Instead, Europe’s biggest automaker focused on the world premiere of a clean-tech concept, the Space Up! Blue. This is the third in a series of “New Small Family” concepts that VW began rolling out at last September’s Frankfurt Auto Show with the two-door Up! mini-hatchback, a sort of modern VW Beetle with a rear-mounted powertrain designed for emerging markets. A longer four-door version, the Space Up!, debuted at the Tokyo Auto Show in October.

For the Space Up! Blue, VW replaced a fossil-fuel engine with an electric motor powered by a prototype hydrogen fuel cell and lithium-ion battery pack. The fuel cell is touted as a so-called “high-temperature” design that’s lighter and more efficient than other types. Here, it’s tucked in the nose, fed by a pair of underbody tanks holding about 7.3 pounds of compressed hydrogen. Equally interesting, the battery pack can be recharged by the fuel cell or by plugging-in to an electrical socket. To conserve juice for propulsion, a set of solar panels in the roof powers various accessories like the air conditioning/ventilation system.

2007 L.A. Auto Show
Volkswagen's Space Up! Blue is the third in a series of “New Small Family” concepts that VW began rolling out at last September’s Frankfurt Auto Show.

VW says the Space Up! Blue can operate solely on battery power for up to 65 miles before recharging, while the stored hydrogen gives a fuel-cell range of 155 miles. Using both power sources gives a theoretical maximum of 220 miles. However it’s powered, the electric motor is rated at 60 horsepower, which doesn’t sound like much but is actually sufficient for a vehicle weighing only some 2400 pounds. VW says 0-60 mph takes about 13.5 seconds--not GTI lively, but again sufficient for what is basically a “city” car. The Space Up! Blue is certainly the right size for crowded urban conditions at 114.9 inches long. Despite that, a long wheelbase, phone-booth styling and space-saving powertrain combine for a surprisingly roomy interior, easily accessed through center-opening French doors. A slim roof-mounted window above each door enhances the feeling of space while recalling VW’s beloved Microbus of the 1950s and ‘60s.

Is there an Up! vehicle in VW’s future? Very likely, judging by recent company statements, though it won’t have a fuel cell until that technology becomes far more affordable. But with fast-growing demand for simple, low-cost cars in China, India, and elsewhere, Western automakers are setting up factories in low-wage countries to produce these vehicles for local consumption, as well as for “first world” customers who think they’re kind of cool. But would the Up! work in America? VW is reportedly considering that question. The result could be a new New Beetle, but more city friendly and environmentally responsible. And it might just do wonders for U.S. VW sales, especially among younger buyers. Stay tuned.

2007 L.A. Auto Show
VW says the Space Up! Blue can operate solely on battery power for up to 65 miles before recharging, while the stored hydrogen gives a fuel-cell range of 155 miles.

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