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Volkswagen’s new affordable small car range, code-named Up!, may have to be converted from rear-drive to front-drive, VW insiders have revealed.
The Up! concept was revealed last year with an ultra-compact twin- or three-cylinder engine mounted under its rear seat to drive the rear wheels. But after development difficulties, the Up! may have to be converted to a more conventional front-wheel-drive layout to achieve its original targets.
Early versions of the car had been hailed as 'the re...Read the full article

Did I read scoop on this splash before? Or has Autocar taken that boast off already?

This isn't a newsstory broken by Autocar. The German auto press reported it a month ago:

http://www.autobild.de/artikel/vw-up-doch-mit-frontmotor_722663.html  19.6.2008

'Der Mini soll aus Kostengründen doch keinem Heckmotor bekommen.' The car[Up!] will out of cost reasons no rear-engine get however.

AutoBild was one on many in Germany to have reported this. And note, I think you are are being sent a curve ball by VW UK Press on the involved, manifold technical reasons for no rear engine. It is as was reported already predominantly down to cost and economies of scale with platform sharing.

Or maybe it's not down to any of these reasons.  Maybe it's because, due to the 10/90 front/rear weight distribution coupled with rear-wheel drive, the first test driver left the track at the first sniff of a corner and disappeared into the tyres spinning like a top...

theoriginalshoe:

Or maybe it's not down to any of these reasons.  Maybe it's because, due to the 10/90 front/rear weight distribution

The intention was for the engine to be under the rear seats, above/just in front of driven rear axle, not rear-engined a la Beetle, 911 as your nonsensical comment implies. Address the facts.

http://www.autozeitung.de/online/index.php?render=133552

 Aaarrrrggghhh!

Front wheel drive cars are the work of Satan. 

Autocar:

after development difficulties, the Up! may have to be converted to a more conventional front-wheel-drive layout to achieve its original targets.

A Mitsubishi i anyone?

I guess the Japanese have better knowledge of making cars...

 

TheOmegaMan:

Front wheel drive cars are the work of Satan. 

Our dark lord just loves the improved packaging efficiency and predictable understeer.

loather:

Address the facts.

Note to self: never make tongue-in-cheek comment as loather might get the wrong end of the stick