Audi is discontinuing the A1, citing Europe’s regulatory landscape as the main cause. Eager to limit the amount of CO2 coming out of tailpipes, the European Union has placed strict limits on petroleum-powered passenger vehicles. For Audi, the price of manufacturing a subcompact automobile-dependent upon internal combustion is getting too high. Installing a smaller motor would negatively impact drivability while slotting in a hybrid powertrain means more R&D costs and jacking up the MSRP to a point where consumers might lose interest.

There’s just not much incentive to build small, efficient vehicles when the profit margins have been made razor thin and people aren’t buying them in great numbers. And this is a lesson that’s being learned by all automakers, not just those associated to Volkswagen Group.  (Read More…)

With just 143 examples registered in the UK, Aston Martin has quietly dropped the Cygnet city car – based on the Toyota iQ. According to UK mag Autocar, Aston Martin will also not be re-entering this space, and will focus on what it does best: making high end performance cars. Originally conceived as a way to meet strict European emissions rules, the Cygnet failed to meet Aston’s initial sales projections of 4000 units annually.

Strong demand is spurring Chevrolet to import more Chevrolet Spark minicars from Korea – though Chevrolet won’t release their initial projections or how many Sparks will be imported in the next round.

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Chevrolet’s Spark minicar will go on sale in July starting at  a price point below the Sonic’s $14,600 (destination included). The Korean-built minicar competes in the “A-segment”, alongside the Fiat 500, Smart Fortwo and Scion iQ.

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