The Financial Times has reported that BMW is considering developing a new car smaller than the MINI.
Such a move would help the German carmaker counter the impact of new EU laws that will impose tough limits on carbon emissions of all new cars.
According to the Financial Times BMW has ordered initial work on prototypes of a low-emission car smaller than any of the company?s models.
It is unlikely that BMW would use its brand for the new car and that it will rather expand the MINI model range.
Recently it was reported that BMW might team up with Mercedes on a small car.