Mercedes-Benz
is throwing everything at the small car game in what appears to be a bid to keep up with BMW, with BMW working to keep up with/stay ahead of Audi, when Audi was only trying to catch up to BMW in the first place. The Audi A1 was developed with the Mini in mind, now BMW is reportedly developing a sub-1 Series car, a car that could wear the Roundel and Mini badges to compete with... the A1... as well as a Megacity EV, and now Mercedes is apparently developing a sub A-Class car to compete with the Megacity.

For Mercedes, this would be in addition to the coming Smart ForFour, sub-C-Class AMG on the sketchboards and the BLK aimed at the Mini Countryman and X1 crossovers. Not much is known about the little Mercedes, but an insider has suggested to Autocar that it will be the length of the original A-Class, which was about 15 inches (338 mm) shorter than the current car. To pull that off, the Mega City challenger could be built on the next Smart ForFour platform. Got all that? It's about to get really crowded at the shallow end of German pool.

[Source: Autocar]