How are you sure it would pass all regs in its current concept form?Modern, clean, sharp, low, rwd, mid-engined (albeit a 1.4 but you can't see the engine from here), etc. so yes it can be done. But you can't buy that I hear you cry, well not my fault vw is clever enough to build it but not clever enough to sell it. And yes it would pass all regs (except the "hit by ugly stick" reg) some manufacturers seem to adhere to lately (not calling any names)
BTW, I like what you did there (post a picture from an angle that would diminish its obviously huge wheels).