Rumor has it that Volkswagen will be announcing a WRC campaign sometime this month. Odds are that the announcement will come at Rally Portugal.
The car will most likely be based on the Polo, as it is lighter then the Scirocco. Development has rumoredly already begun, as VW has been considering the possibility since the WRC rules changes were announced.
No driver has been confirmed for VW. Rumors are that Sebastien Loeb has been approached and he has declined (big surprise). Another name making the rounds is Petter Solberg, but only time will tell.
With Mini and VW joining, the WRC could become much more exciting in years to come. Toyota has also been rumored to making an entry, but nothing concrete has emerged from Toyota.