There are many places in the world where cars are taxed based on engine displacement. So if you can get more power out of a smaller displacement engine, the customer gets the performance they want without the tax penalty. Hence why VW would be inspired to develop this car.

As for the remark about the car's fuel consumption compared to the new Civic, there's no real way to compare the two with just the information available in this thread. "Average fuel consumption" as stated by the manufacturer in a European press release is not the same as what a car is able to get on the EPA highway test here in the USA. I highly doubt the new Civic will get 40 mpg in combined city/highway driving, but hey, who knows?