Speaking at the New York Auto Show, Volkswagen head Stefan Jacoby has said that the German automaker would consider launching the Up! microcar in the United States market. Says Jacoby, "Up! could be in the future of the market here. In urban areas like New York, a car like Up! has a good chance."

As it currently stands, VW plans to have the urban runabout ready for 2012, though it’s not yet certain what countries will get first crack at the diminutive machine. We’re also not entirely sure what kind of powertrain the Up! will be launched with or if it will be powered by gas, diesel, electricity or a combination thereof.

In related news, Jacoby suggested that Volkswagen would be in favor of a U.S. car scrapping scheme. "Such incentives could be modeled after the successful German scrapping program that provides vouchers for the purchase of new cars," he said. We’ll see.

[Source: Reuters]