Launching a coupe on Europe's crumbling auto market is too risky.

Ford has turned down its European division's request to build a small sub-Mustang coupe, a new report indicates.

The proposed project called for the coupe to use an existing front-wheel drive platform and to rely largely on three- and four-cylinder engines, including at least one turbodiesel mill. It would have been noticeably smaller than the Mustang and rumors claim that it was intended as a heir to the iconic Capri of the 1970s and 1980s.

The project was presented to Ford's top brass earlier this year but CEO Alan Mulally reportedly turned it down because developing a low-volume vehicle such as a coupe for the ailing European market is too risky. The project might be reconsidered when the market returns to health, however.

European buyers who want a Ford-badged coupe are not entirely out of luck. The Blue Oval has confirmed that the next-gen Mustang will be sold through Ford dealers on the Old Continent, marking a first in the model's long history. Currently, most Europeans who want a new Mustang have to buy it in the United States and ship it back or go through a gray market importer.