Car Magazine is reporting BMW will use the third-generation MINI platform to build a new compact car.
The so-called "0 Series" (internally referred to as the "Untere Kompactklasse", German for "Lower Compact Class") will be slotted between the MINI and 1 Series to go up against Audi's A1 and Mercedes' A-Class.
Because it is based on the MINI platform, the 0 Series will be front wheel drive, a first for BMW.
Efficiency being its main selling point, the 0 Series will likely make use of BMW's three or four cylinder engines and will help the company's fleet meet CO2 and MPG requirements. A hybrid or electric version may also be a possibility.
Car Magazine reports the new car will come in two- and four-door hatchback versions as well as a two-door roadster.
More: Report: BMW Building 0 Series on 3rd Gen MINI Platform