Mini to introduce smaller city-car?

Mini is working on an even smaller car for the European city-car market, a new report finds. The city-car market -- which has increased in popularity over the past few years -- could be a way for Mini's parent company, BMW, to reduce its CO2 emissions in the face of stricter regulations from the European Union.

Motoring File is reporting that the even smaller Mini will sticker for around Ã'£8,500 and would hit the European market early next decade.

Mini recently unveiled the larger Mini Clubman at this year's Frankfurt Auto Show. The introduction of the Clubman and possibly a new city car shows BMW's commitment to expanding Mini's lineup worldwide.