BMW LogoIf you’ve read the post below, you’ll know that Audi is developing it’s new Audi A1 to go against BMW’s MINI, not intending for the latter brand to have the premium small hatchback market all to itself. Now get this – BMW is making it’s own compact car based on the MINI’s front wheel drive platform to go against the Audi A1, which was developed to go against the MINI. Somehow I find that hilarious.

Auto Motor und Sport says the new BMW compact car will be called the BMW City. The 3.75 meters long compact is expected to hit the streets by end-2010, the same year Audi intends to roll out the A1.

BMW used to produce a small minicar a long time ago back in the 1950s called the BMW Isetta, which was powered by a BMW 1-cylinder motorcycle engine. It was known as the rolling egg, as it had the appearance of an egg with wheels.