Yes, VW will be building a new small car for Dodge to sell in the US. Alas, my Polo hopes have been dashed.
Since the Polo was deemed to small for America's super-sized tastes, Volkswagen is considering other possible platforms, with the last generation Jetta's currently residing at the top of the list. (Autoblog)
Ack, only Dodge/Americans would call the Jetta a small car.