The problem stems from Audi execs that think that the current concept is too radical to go into production. Although Audi's designs have never been extreme styling statements, the idea of pitting sometime that's a serious stretch for consumers looking for an option outside of the MINI might be too much to ask.
Production of the Polo-based A1 is practically assured, likely to begin in the third quarter of 2009 at Audi's Brussels assembly plant. The new entry-level Audi will be powered by a range of turbo'd gasoline or diesel engines, between 1.2- to 2.0-liters, with a naturally aspirated 1.4-liter making it into the base model.
[Source: Automotive News – Sub. Req.]