While technically feasible, pricing the Polo R in the VW lineup would pose a problem.

[Editor's Note: Pictured here is the 2011 Polo GTI.]

Given the conflicting reports - the VW Polo R is in development and coming, then VW denies it's making the car - it might be right to assume that VW itself is conflicted on the question.

According to Autocar, the Wolfsburg-based automaker is not keen on the premise of a Polo R version despite the fact that sister-brand Audi has already modified the PQ25 platform, which the Polo shares with the A1, for the premium brand to build an all-wheel drive Quattro variant of the A1, likely an RS1 model.

As a Volkswagen R division source told Autocar:

"We already have Polo GTI at £19,000 and then the Golf GTI is only another £6000 more; it would be difficult to price the Polo R between them."

Which makes sense since we've heard this price dilemma argument before.

In an interview last year with Australian site Drive.com.au, VW technical exec Dr. Ernst Linder said: "From the technical point-of-view, of course we can do something [regarding the Polo R], but from the financial point-of-view it makes not so much sense. It would be too expensive and we have the S1."

VW wavers on the Polo R - report