BMW is working on a vehicle for people who want a small and efficient city car but don't want to sacrifice luxury and handling. The company plans to include in its range by 2015 a "mega city" car more suited to crowded urban streets, according to BMW's CEO Norbert Reithofer. This new car may be part of the basis for the rumored Isetta program.

The design would be a response to rising fuel prices and tough new environmental regulations: "It'll be a car with a completely new look, with two engines available. One will be a very efficient internal combustion engine and the other will be a purely electric model," Reithofer told the German newspaper Die Zeit.

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