"Imagine a mid-engined lightweight two-seater roadster with Boxster performance and handling at the price of a well equipped Polo. That's the kind of package we are working on," says Pischetsrieder.
That hints at an affordable 15,000 (British pounds) entry price for the as-yet unamed roadster - a package sure to cause headaches for the similarly priced StreetKa, Peugeot 206CC and the Smart Roadster.
VW engineers are said to be aiming to keep the curb weight between 600 and 700kg - more than a Caterham Super Seven, but less than a Vauxhall VX220.
To reach this target they have opted for a mix of materials for the body and structure: aluminum, magnesium, carbon fiber and high-strength steel.
The car will be powered by the 150hp 2.0 liter FSI direct-injection engine that's just been launched in the new Audi A3. It will drive the rear wheels via a six-speed tranny.
VW insiders claim the 0-60mph sprint will take just six seconds, and the top speed will be around 150mph - that's deep into VX and Elise performance territory and enough to blitz more mainstream rivals like the Mazda MX-5, Toyota MR2 and MGF.
Even so, the VW's fuel consuption could be up to 55mpg - a result of the car's light curb weight and it's engines advanced fuel-injection technology.
The VW is said to resemble a downscale version of the stillborn W12-engined Nardo supercar, complete with bold wings and shoulders, truncated rear end and scalloped flanks. The Nardo was shaped by ItalDesign.
To keep close eye on cost, the module which secures the engine and tranny on the new roadster is lifted from the Polo - the subframe is mounted behind the rear seats at 180 degrees.
This mobility of parts is what Pischetsrieder calls "click tecnology" and it allows different structures from different cars in the VW family to fit together, jig-saw style.
VW is serious about the roadster's minimalist nature - there are no plans fit power steering, electric windows or central locking.
To trim curb weight further the VW roadster will use a simple manual fabric roof.
On the safety front, however, VW will check most of the boxes, fitting four airbags, anti-lock brakes and ESP stability control as standard. The fixed rear roll-over hoop and re-inforced windshield frame are said to be integral parts of the chassis stucture - so along with the full safety package, expect a good crash test result.
We understand that one of Pischetsrieder's daughters inspired the roadster concept - she drives a Lotus Elise.