At this point, BMW is reportedly still deciding whether or not to offer both electric and internally-combusted versions of the new city car. BMW has quite a few small engines currently powering their line of motorcycles, and one of these engines could make an appearance in the rear of the vehicle. Possible powertrains also include a hybrid, natural gas or even fuel cell variants. Because of the high investment required to get the proposed vehicle off the ground, BMW could partner with Daimler-Benz which already offers its own tiny car under the smart brand. Rumors also link long-time BMW partner Manga Steyr to the project. Interestingly, the Canadian based auto parts giant has recently confirmed that they are working on hybrid vehicle development.