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BMW is planning to bring two new small cars to market that will slot in under the current 1 Series, by 2014. According to Auto Motor und Sport, the first model is an electric city car (that BMW has already said is coming), which will use the electric motor shown in the ActiveE Concept (shown above) at the Detroit Auto Show. It is expected to be called the Megacity.

The second model is to be powered by a range of three-cylinder engines and a hybrid version is also a possibility. Interestingly, unlike other BMWs, this new small car is likely to be front-wheel drive. BMW is said to be looking at building a new front-drive platform in-house, but is also engaged in talks with other automakers to purchase a front drive platform from them, weighing both alternatives to see which is more cost effective. BMW has been rumored to be speaking with Toyota about using the iQ underpinnings.

With Audi set to unveil the new A1 premium small car at the Geneva Auto Show this year and Mercedes working on a whole line of new small car (including a new A-Class and B-Class) for 2013, BMW hopes to have its new premium city car ready to hit the market before 2014.

More: Report: BMW Bringing Two New Small Cars to Market by 2014 on
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