Hanover, Germany - Volkswagen said Friday it was abandoning plans to introduce a light pick-up truck in Europe.

It had originally planned to begin production in 2010 in the German city of Hanover.

Light pick-ups resemble a car, but have an uncovered cargo tray behind the driver's cab.

Volkswagen, which is a major van manufacturer, said it would continue with its plans in Pacheco, Argentina to build a basic pick-up with no enclosure round the tray. That vehicle, the "Pick-up Robust," is intended for emerging markets.

The European pick-up with a bodywork enclosure was no longer viable because of rising fuel prices and a lack of demand for such vehicles.

"The environment has radically changed," said a spokesman for Volkswagen commercial vehicles. (dpa)