Autocar is reporting that Mercedes-Benz is hard at work on a competitor to the BMW MegaCity. According to the report, MB is currently putting its designers to work to come up with suitable styling studies for an alternative-fuel city car. Currently, the project is said to be operating under the working title "Mega City Mobility," though there's no telling what, if anything, will land on the production line as a result of the project. Autocar says that Mercedes-Benz intends to answer vehicles like the BMW MegaCity and a rumored electric Audi built on the same bones as the Volkswagen Up city car.

Interestingly enough, the Mega City Mobility project is based in Japan, where the automaker says that the country's focus on intelligent ways to overcome spatial constraints provides plenty of inspiration. So far, designer have come up with at least one clay model that could use underpinnings from the next Smart ForFour (previous model pictured above).

[Source: Autocar]

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