Mercedes-Benz is already hard at work on a BMW 1-Series competitor and now, according to a report by AutoCar, Infiniti is also looking for a BMW 1-Series and Audi A3 rival. Inside sources at Infiniti, told AutoCar that the automaker is planning a 1-Series rival that, design wise, will be totally different from anything in its segment.

Infiniti is looking at a small, high-end crossover or a coupe/cabriolet as body styles. The car is expected to arrive around 2010.

Our take? If it carries the 3.7 liter V6 producing 330-hp from the G37 coupe, BMW has something to worry about. We expect Lexus to follow with its own baby model.

Source: JustAuto (Subscription Required)

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