BMW LogoAccording to Autocar, BMW CEO Norbert Reithofer has confirmed in a report by German weekly newspaper Die Zeit that the boys at Munich are currently developing a new city car.

He did not mention which of its brands the new car would be sold under – we can definitely rule out Rolls Royce but there is a possibility that other than BMW or MINI, a fourth brand will be set up which could see the revival of the Isetta name as a brand. BMW also owns the rights to the Triumph name.

The new BMW city car will come with two engine offerings. One will be a conventional internal combustion engine with a small displacement to be fuel efficient but the other will be a Zero Emissions Vehicle that will use pure electric propulsion. The electric version is planned to have a range of at least 322km.

The original BMW Isetta was a rebadged (the original was a project by Iso) and redesigned car that saved BMW from financial crisis. This new city car may very well end up being a joint venture project with Fiat (sharing a platform with the upcoming Fiat Topolino?) as per the small car joint venture announcement made early July 2008. The internal combustion engine could be Fiat’s two-cylinder SGE engine.