It was reported earlier this week, that Mercedes-Benz was thinking about killing the current A-Class, but now there are rumors that Mercedes may be thinking about building a 1-Series and A3 competitor. Additionally the automaker may be in talks with BMW about using the current MINI platform for the upcoming car.
According to Auto Bild the two automakers may be considering a future collaboration on subcompact cars. It is rumored that by the end of July the automakers will come to a final decision. Honda and PSA were also rumored to be potential partners for Mercedes.
Full Story: Autoblog