The latest issue of Car Magazine has an article about new compact class BMW in the works. It's known internally as the UKL1 (Untere Kompaktklasse (lower compact class)) and is supposed to target the Audi A1 and Mercedes A-Class. It will be based off the 3rd gen Mini and is said to be coming in 3 variants -- 3 door hatch, 5 door hatch, and 2 seat roadster.
Power will come from 3 and 4 cylinder engines.
Er...um...What? This is really getting out of control. How are they going to have two cars built on the same chassis aiming for the same market segment that somehow don't cannibalize each other's sales? I guess there are enough stupid people out there that will pay BMW prices for a Mini to make this seem like a good idea. This kind of badge engineering would make GM blush.