All too often the Fiat 500 gets lumped in with the Mini Cooper and Audi A1 in the premium hatchback game. But the Fiat is both cheaper and smaller. In reality the Fiat group's challenger for that class is the Alfa Romeo MiTo. As for Citroën, its DS3 is also bigger than the 500. So if the French automaker is going to go after Fiat's territory, it too will need something cheaper and smaller.

Enter the DS1. Since launching the DS line (pictured above) with the DS3, Citroën has focused on going bigger and more expensive, with vehicles like the DS4 and DS5. But rumor has it that, at the upcoming Geneva Motor Show in March, Citroën will debut a new entry to slot in below the current DS line.

Sources expect the new DS1 to measure less than 12 feet long and pack a choice of three-cylinder engines with less than 100 horsepower on tap, but that a performance version could offer closer to 130. We'll have to wait a few to find out one way or another, but the Fiat 500 (as popular as it's been overseas, but slow-selling on American shores) will have to sit up and take notice.

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