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VW plans production of 235 mpg car
And it's not bad looking, either.
The entire car is made of carbon fiber to keep weight down, and obviously it's extremely streamlined to limit drag. Unfortunately this also makes it very expensive, but VW expected the price to come down to a level at which it makes sense to build the car by 2012. Thanks to sky high gas prices, they now think it makes sense to build starting two years from now, in 2010.
It uses an 8.5 horsepower diesel; the production model may have about twice that amount of power to satisfy consumer's desire for acceleration.
No word on what the acceleration will be but the car looks very cool and I think a lot of people will want it -- even at the anticipated prices of about $30-50k.