Auto Express reports that Audi is currently developing a new small city car, which will compete Ford's recently launched Ka and the Fiat 500. Though there were some rumors in the past regarding a small Audi car based on the A1 concept, it seems that the platform used for the upcoming A1 will be the one from Volkswagen's Up! Concept. The platform will also be used for small cars from the other members of the VW Group, Seat and Skoda.
Currently, Volkswagen engineers are working on two 600cc two-cylinder turbocharged engines (one diesel and one petrol) which will have an estimated fuel consumption of 95 mpg (3 liters/100 km) and CO2 emissions under 100 g/km. Also, a 1.2 liter three-cylinder engine might be available. So far, there aren't many details available, but one thing's for sure, the car will have ultra-low running costs and emissions. Volkswagen plans on launching the Up! model in 2010, with the mini Audi coming two years later, in 2012.
Check out one more photo after the jump.
Source: Auto Express