BMW confirmed that they are indeed working on a a top-secret new eco-friendly model which could mark the rebirth of the famous Isetta badge. The project is internally known as the "Project i" and includes development of an all-new urban runabout that will com­plement the existing BMW, MINI and Rolls-Royce ranges.

Engineers working on the project are currently evaluating which technologies the Smart ForTwo rival will use, with advanced electric systems and fuel-efficient petrol and diesel powerplants under consideration. “We will look at all these things before we decide whether this might be a sub-brand for BMW or MINI, or whether it is a standalone marque,” said Reithofer.

The new "baby" will be first seen as a concept car sometime in 2010.

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