Report: Audi's MINI-fighting A1 "confirmed"

Top Audi officials have reportedly told Germany's WirtschaftsWoche magazine that development of a MINI competitor has been approved. Believed to be called the A1, the new car is based on the A000 architecture.

Previous reports indicated Audi was having a hard time sourcing a platform for the A1. It now appears the car is being developed in conjunction with sister company SEAT. Audi is also rumored to be working with SEAT on a new mid-engine platform, which will be used for the Audi R4 -- a Porsche Boxster competitor.

Previous reports have indicated the A1 will arrive as a 2009 or 2010 model. Rumor has it the car will show up at IAA 2009 in Frankfurt. A 240 horsepower model will be positioned against the Mini Cooper.