The rear-engine Volkswagen is coming back. Here's what we know so far: Volkswagen's reinvention of its iconic people's car will have its engine situated on top of the transaxle and a radiator in the nose. Three wheelbase options and two body styles will be offered worldwide, but only two variations will come to the United States: a 130-inch-long Beetle reincarnation aimed at the Smart ForTwo and a no-frills, four-door notchback likely to be marketed as a smaller, cheaper Jetta. Pricing will be in the $10,000-to-$14,000 range.

Sources deep inside VW's headquarters have indicated that the company currently is working on a rump-motored, water-cooled small car, one that mimics the original Beetle in both layout and purpose.  Although third-world countries will receive a two-cylinder engine (emerging markets may even get a one-cylinder unit), U.S. cars will likely be powered by a turbocharged and direct-injected three-cylinder.

Volkswagen long ago abandoned the people's car demographic for richer climes. Most recently, Piëch's grand vision for the brand lay in cars like the failed Phaeton. Now it's back to a bottom-of-the-market, rear-engine econobox.We don't doubt that a rear-engine layout can be made to work safely in an inexpensive small car. One executive has admitted that the company plans to "install [stability control] to address handling issues." But we're still not sold on the rear-engine idea.