Volkswagen readying baby GTI

Volkswagen is secretly developing a new range-topping version of its up! city-car to rival the Abarth 595 hot hatch.

According to Autocar, which revealed VW's plans for a micro hot-hatch, the up! GTI will come powered by the new EA211 1.0-litre turbo three-cylinder engine that has recently been introduced to the updated Audi A3 range.

In the smallest GTI it will produce at least 84kW/200Nm and, combined with a kerb weight of well under 1000kg, the pint-sized hot hatch should hit 100km/h in less than eight seconds and a top speed in excess of 200km/h.

Offered with either a six-speed manual or seven-speed dual-clutch automatic transmission, the fastest ever up! will come with new springs and dampers, bigger brakes and a lower ride height.

Externally, the up! GTI will come with 16-inch alloys and a bodykit inspired by the Golf GTI, while inside the up! GTI will come with tartan cloth sport seats and plenty of unique touches not available in the rest of the up! range.

Sadly, following the up!'s withdrawal from the Australian market back in 2014 it's unlikely the tiny GTI will venture Down Under.