BERLIN—Volkswagen AG will launch a new small car the Up! in Europe in December.

The European automaker says the Up! which will come in three versions will be about 3.5 metres long, and powered by a three-cylinder, one-litre gasoline engine.

Volkswagen says a natural gas version will follow and there are “definite plans” for an electric-drive version by 2013. It says the Up! will come with an optional emergency braking function designed for city driving.

The company hasn’t release pricing information or when the new compact will be launched in North America.

The automaker also announced its global deliveries increased by 16.3 percent during the second-quarter.

Volkswagen, whose brands include luxury car-maker Audi, Skoda and Seat, says it delivered 655,600 vehicles in July, up from 572,100 in July 2010.

Sales over the years first seven months were up 14.4 per cent over last year to 4.75 million vehicles.

It says year-to-date sales rose 10.2 per cent in Europe, wher it delivered 2.2 million vehicles. Sales in China rose 16.4 per cent to 1.29 million and U.S. deliveries were up 20.5 per cent at 249,500 autos.