Audi's Chairman of the Board and CEO, Rupert Stadler, announced the company isn't working on a smaller model to slot below the current entry-level A1.

Audi's Chairman of the Board and CEO, Rupert Stadler, announced the company isn't working on a smaller model to slot below the current entry-level A1.

Back in November last year we heard a rumor about Audi planning to get its own version of the Volkswagen up! but it seems this was just vapor as the company has denied working on a new car to position below the A1. Such a model isn't considered because the A1 is doing quite fine in terms of sales and provides good profit margins so there isn't a necessity for a smaller and cheaper model.

On the other end of the range, Audi is analyzing the prospects of introducing a new flagship model but it won't be an A9 or something similar because the Germans are focusing on SUVs so expect something larger and more luxurious than the Q7, possibly with the Q8 badge. Such a decision is understandable taking into account Rupert Stadler estimates that Q models will account for more than 45 percent of sales by 2020 so they need something to compete with the already confirmed BMW X7 due in 2017 or 2018.

If green-lighted for production, the Audi Q8 (name not confirmed) will be offered with an e-tron plug-in hybrid system which will find its way on other models later this decade.

Note: Audi A2 EV Concept pictured.

Be part of something big