Audi has just announced a multimillion investment to adapt the VAG group's plant in Forest, near Brussels, Belgium to produce the A1. The Brussels plant will be producing a single model for the first time in its history. The site previously played a supporting role for the Volkswagen Group.

After the initial €100 million investment, the Ingolstadt firm is adding a similar quantity to finish equipping the body shop, paint shop and assembly plant. One notable aspect is that plant workers are being specifically trained in electronics. Audi states that the A1 "with its next-generation electronics represents a challenge" for the plant. Is this a hint at a hybrid version? We don't know, but what is certain is that Audi will use the latest iteration of its TFSI (gasoline) and TDI (diesel) engines in the A1. Audi expects more than 100,000 A1s to roll off the assembly lines in 2010. Full press release after the jump.

A production version of Audi's new A1 mini-car will be arriving in late 2009 and Audi CEO Rupert Stadler would like to see it exported to the US. The VW Golf-based A3 hasn't been a roaring success here but as gas prices continue to rise, Stadler thinks the market will shift and he wants his brand to be ready to cash in. In order for the A1 to be viable with the steadily falling US dollar, the company will have to keep costs to a minimum. One alternative would be to build the A1 in the US and with Volkswagen studying locations for a US assembly plant that may be a possibility.

[Source: AutoWeek, via Autoblog]

The boffins at CAR magazine over in the UK have managed to procure the first official images of the upcoming Audi A1. The A1 will be Audi's new entry level model that will be built in the plant in Belgium that they recently took over from Volkswagen. As a premium brand within the VW group, Audi's new small car will take on BMW's MINI rather than going for cheaper models like the VW Polo and Opel Corsa.

Base models will be front wheel drive and use VW's direct injected TFSI engines ranging from 65 to 170hp. Diesels will also play a prominent role with 75 to 130hp. As with other Audi models Quattro all-wheel drive will be optional and three and five door hatches along with a two door coupe and convertible are expected. Head over to CAR for more images and details.

[Source: CAR]

New Audi Boss Rupert Stadler, has confirmed that they will build a new entry level car to take on the Mini. The new A1 is projected to sell in volumes of about 100,000 units a year, starting in 2009. The car is expected to be built in the VW Group's Brussels plant that until recently built Golfs. Golf production was shifted back to Wolfsburg, but the new car expected to save 2,200 jobs in Belgium. Even as an entry level car for Audi, the A1 will probably have a higher trim level than a comparable VW model, much like the Golf-based A3. There is no indication of whether the A1 will share a platform with the planned VW Smart fighter.

[Source: Reuters via GermanCarBlog]

We love what Audi has done for the image of the modern diesel engine, and even though their state-side offering isn't the greenest stable on the block, they pulled a respectable 533 in J.D. Power and Associates' Automotive Environmental Index (AEI). That was good enough to place them 13th on the inaugural list just after the Mini. Speaking of the Mini, where would Audi have placed if they offered a small, economical A1?

Motor Trend is reporting that Audi is aiming to present six new vehicles for release in the next three years. Whether or not they'll hit their timetable is one matter up for discussion, but what we're particularly interested in is the fact that they included the A1 on their list. It was "a well-placed member of [Audi's] marketing department" who informed the magazine that Audi chief Martin Winterkorn is an admirer of BMW's Mini which the A1 would presumably target. There is, however, a fine line between admiration and jealously. Winterkorn insists that the car will not be a clone of the Mini as he calls the U.K. icon "an accident that came out of BMW's ill-fated British adventure." One other point that Winterkorn makes is that the Mini's American success was also an accident. He says, "U.S. sales aren't a priority for us... [Y]ou can't design a small car with U.S. success as the object."

This, of course, gets our green blood boiling, but does Winterkorn make a good point? Outside of our major metropolitan cities is there a market for small, economical cars? The Mini has obviously done well, but is that only because of the brand's iconic status? And how will the most diminutive of cars, the Smart ForTwo, sell in the states? Is Audi's premium-brand status a factor in Winterkorn's remark? Then again, the last time I checked, VW has yet to export the Polo to our shores. As always, sound off in the comments section. We're particularly interested to hear what you think about the American market for small, economical cars.

[Source: Motor Trend]