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Volkswagen is set to revive its rear-engine design that was made popular with the original Beetle by releasing a new small car featuring a water-cooled mill residing over the rear axle. The plans were disclosed by an internal source, who also revealed that the new car will be offered with three different wheelbase sizes and two distinct body styles. One version will measure around 130in and is likely to feature retro cues mimicking the Beetle, making it a perfect rival to the upcoming Fiat 500.

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