Volkswagen is no stranger to the fuel miser ranks. Its Lupo 3L, the advanced 78-mpg city car masterminded by former chairman Ferdinand Piëch, proved just what is capable if a carmaker is prepared to forgo profits. Unfortunately, the disappointing sales figures - only 28,000 units were sold in six years - meant the mileage champ was ultimately dropped from the German carmaker's lineup. It left a hole that Volkswagen hopes to fill with the Polo Blue Motion. The three-door hatchback is based on the popular front-wheel-drive Polo 1.4 TDI, making the same 80 horsepower from its 1.4-liter 3-cylinder turbodiesel. But with a reworked 5-speed gearbox, an optimized aerodynamic package and 14-inch low-rolling-resistance tires, the Polo Blue Motion returns a highly impressive 60 mpg on the combined European consumption cycle. That's a 8.3-mpg improvement over its standard sibling, made even more impressive by the car's 717-mile range.

Performance is moderate, befitting the new car's intended role: zero to 62 mph in 12.8 seconds and a top speed of 109 mph. In response to criticism of the Lupo 3L's on-road properties, Volkswagen claims to have developed the Polo Blue Motion to provide a level of ride and handling more in keeping with its standard production models - which is one reason why it does without the annoying stop/start function used by its predecessor to reduce consumption around town.