BMW could go smaller than the MINI to meet EU CO2 rules

BMW could attack the new EU carbon dioxide emissions limits by adding a tiny BMW-branded car to the lineup. The new model would likely share a platform with the British-built icon but be even smaller and wear the roundel badge and twin grille.
Such a car would help reduce BMWs fleet CO2 average but would also let the Bavarians compete more directly with the upcoming Audi A1 that's coming in 2009. If the car is built, it would be the first front-wheel drive car from the brand. MotorAuthority has a rendering of what such a car might look like based on cues from the recent CS concept.

[Source: MotorAuthority]