It’s been quite a while since we’ve heard anything from BMW on their Project i program. According to CARandDRIVER, the first city-car, code-named “Project i,” will be launched in 2012. The car will be smaller and cheaper than the next BMW 1-Series and Mini Cooper that are due out in 2011.

BMW has put a halt on pursuing small-volume niche cars such as the much talked about X7, X4 or the mid-engined CS sports car. Instead, BMW will now focus all those resources on a three-door hatchback that the company internally refers to as the BMW “City.”

CEO Norbert Reithofer says that the City was specifically designed for the U.S. market to meet California’s Zero-Emission-Vehicle requirements. The four-seater City will be smaller than the Honda Fit and will be built in large-volumes by 2012.

Powered by an electric-motor that gets its juice from a an advanced water-cooler lithium-ion battery pack, the City is expected to provide a range of 100 miles. No decision has been made on whether the City will be badged as a BMW, Mini or a another brand altogether.

- By: Mo Eladawy

Source: CARandDRIVER