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Volkswagen says it will start production on a 261 miles per gallon car.

Until Thursday s announcement, the XL1 was just a concept car, but the German auto maker says it will go into production and will be the most fuel-efficient car in the world.

The two-seater has a plug-in hybrid system and VW says it can go 32 miles in all-electric mode without producing emissions.

If you re looking for performance, look elsewhere. While the XL1 boasts a top speed of 99 mph, it goes from 0-to-62 mph in 12.7 seconds. It has a two-cylinder engine, runs on diesel, has a 7-speed automatic transmission and a lithium-ion battery.

Don t get too excited, though. Car and Driver reports that it probably won t be available in the U.S.

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