As we’ve told you previously - Volkswagen is working on an affordable, mid-engine coupe and roadster that could hit showrooms by 2011 if the concept version, that will debut in LA, is received positively. Volkswagen is hoping that the car will help it strengthen its image and help it sell more than 5 million cars by 2018.

According to sources the car will be an updated version of the Concept R that was shown at the 2003 Frankfurt Auto Show. Volkswagen is said to have teamed up with Audi to built a aluminum-spaceframe construction and is expected to use components from other VW models to keep cost low.

“We are working on a mid-engined concept for the Los Angeles motor show,” a source at VW’s Wolfsburg headquarters told Automotive News. “It is the fifth time in as many years that we have created such a car, but this time, more than any other, the signs are looking good that we will get production approval.”