Audi will launch a radically different A2 successor by 2008. The car will be aimed directly at BMW's Mini.

Audi sources said the next-generation steel-body A2 will arrive by 2008 and will be based on the front-wheel-drive Volkswagen Polo small car. The A2 may offer all-wheel drive. Winterkorn said the A2 will closely resemble the Shooting Brake concept shown last autumn at the Tokyo auto show.

The new A2 is part of an Audi product offensive to raise its lineup to 40 models by 2015, up from 22. A new A2 also will heighten competition in the sales race between BMW and Audi.

Story: Autoweek