After an amount of press speculation,<ref>Volkswagen IROC Concept: Fit to Carry the Scirocco Name? (Automobile Magazine article written by Jason Cammisa, a Mark II owner)</ref><ref>Fast-Autos.net</ref><ref>Volkswagen Iroc Study</ref> in June 2006, VW officially announced production of a new Scirocco model at the Autoeuropa assembly plant in Palmela, Portugal.<ref name="announcement">Template:Cite news</ref>
A concept of the 2008 Scirocco was shown at the 2006 Paris Auto Show, called the Iroc, later the name was expanded to Scirocco. It is said to share more in spirit and name rather than form with the original design. The 2008 Scirocco will receive the option of four petrol engines and two Diesel engines: Volkswagen's TSI twincharged straight-4 producing Template:Convert, Template:Convert and Template:Convert, and the 200 hp 2.0T FSI engine (currently featured in the Mark V Golf GTI, the Passat and Jetta) and common rail 2.0 TDI engines producing Template:Convert and Template:Convert (currently featured in the Tiguan)
In April 2007, VW America's vice president, Adrian Hallmark, stated that his company did not want to bring the Scirocco to North America since it would likely have a negative effect on GTI sales. It was later stated that the final decision would be made in 2008 by Martin Winterkorn (Volkswagen's CEO), not Volkswagen of America.
In the 24 Hours Nürburgring in May 2008, three new Volkswagen Scirocco<ref></ref> did very well in the field of over 200, among them many high powered cars, finishing 11th and 15th, with veteran Hans Joachim Stuck driving both cars (and Carlos Sainz the slower one). The direct competitors, two Opel Astra GTC driven by drivers selected from 18,000 hopefuls in a year-long TV covered process, were beaten decisively.