According to insiders from the VW Group, the performance version of the XL1will likely be called the XLR and will feature a two-cylinder petrol engine from Ducati's 1199 Panigale superbike.

VW’s head of R&D, Hans-Jakob Neusser, told Autocar that the Ducati-engined XL1 is well underway, saying “Yes, we are working on it internally. It is a very special project,” Neusser said. Although he declined to confirm when the new car would be revealed, chances are it could debut at the 2014 Geneva Motor Show, possibly followed by a small production run.

The XL1 features a rear mounted plug-in diesel electric hybrid powertrain developing 68hp and 139Nm of torque and will ditch the diesel for a high-revving 1.2 liter two-cylinder petrol engine. on the Ducati 1199 Panigale bike develops 187 hp at 10,750 rpm and 123 Nm (91 lb-ft) of torque at 9,000 rpm.