Wolfsburg, Germany - Volkswagen is working on plans to build a new cheap mid-engined sports car that is scheduled to be presented at the Los Angeles Auto Show in November, Germany's Auto Bild newspaper reports.

Drawings published by the newspaper show a car with large wheels and a long wheelbase.

Four cylinder engines with an output between 77 kW/105 hp and 118 kW/160 hp were possible for the lightweight car with a body weight of under 1,000 kilogrammes. Several components such as steering, brakes and electronics would probably come from standard VW vehicles to bring down the price, the report said.

The concept could also serve as a basis for the successor model of the current Audi TT, the report said.

A VW spokesman however described the report as "pure speculation". (dpa)