According to some rumors circulating on the web (yes, I know,they’re not the most reliable ones), BMW is working on a new model, smaller than the current 1-series hatchback and based on the Mini cars. BMW supposedly will implement their first FWD and it’s apparently going to be cheaper than the Mini.
The rumors say that the reason why BMW is considering such a model is the new emission rules and the environmental approach that a lot of car manufacturers are taking these days.
To be honest, in my opinion I don’t think BMW will build such a model, first because the 1-series hatch is doing pretty well in sales and the car is already small enough. Second, as long as BMW has the Mini brand, it would not make sense to produce a car that will directly compete with the Mini cars and therefore affect the sales.
In order to deal with the new CO2 standards pushed by EU, BMW will probably going to build some new low-emissions engines.