Right now the leading contender in Europe appears to be the Skoda factory in Vrchlabi, Czech Republic. The up! based cars will be sold in several styles and under several VW Group brands. The basic version is intended as a city car that offers more utility than competitors like the Smart ForTwo. VW wants the up! to be able to accomodate four adults comfortably when needed although it will primarily be used for two occupants. With two people aboard, the up will still offer plenty of room for luggage for a trip or groceries.
Source: Autoblog Green