Set for this year?

We wish. I'll believe it when I can order it.

Do they have suitable gearbox? Existing one may not fit in Citigo. Not enough room. Citigo's gearbox may not be strong enough for turbo engine.

1.0 turbo Citigo may not be cheap if it comes some day.

I don't think it will happen as the price would be too high. It would end up being at least 13K and that is silly for a cheap city car!

To be fair a fully spec'd monte isn't far off that much. I'd probably pay £13k for one. The citigo is way more than just a city car. Just took mine on a 150 mile round trip, it's awesome. 100bhp would complete the car!

If it does it will only be for the Up! and likely for just the Brazilian market (the Up! in Brazil has a lot of features different from the EU Up! Colour coded boot wing mirror indicators wind down rear windows for the 5 door)

 

http://revistaautoesporte.globo.com/Noticias/noticia/2015/05/volkswagen-revela-detalhes-do-novo-motor-10-turbo.html

 

It's not in the list of Up! models on the VW Brazil Up! car list, but notice the Offroad type Up! on offer which strongly suggests the Up! TSI engine will only be available to Brazil and unlikely to reach the EU

 

http://www.vw.com.br/pt/carros/up/versoes.html