Ultra compact vehicles like the Honda Fit and fuel-sipping hybrids like the Toyota Yaris are making huge headway in the marketplace, thanks largely to rising gas prices. We first heard about the Loremo LS back in February at the Geneva Motor Show, where the German automaker was showcasing the super stylish coupe capable of going 157 miles on a single gallon of gas.

It was little more than a lightweight (992 pounds) concept at the time, but we’ve just received word that the Loremo LS is set to head into production by 2009, thanks to a hefty investment from Kosmo Motor Company Sdn Bhd. As a wholly-owned subsidiary of Kosmo Tech of Malaysia, the company signed a Sale and Purchase Agreement, giving them a 26% stake.

Now that this hot little number (that only takes 1.5 litres of gas to drive 100 kilometres) is ready to hit the road, and it has really gone international, establishing itself in the Southeast Asian market, you should fully expect some pre-orders to be taken soon… even if we don’t know how much it costs.