We have new details about the BMW Megacity subcompact, which will go on sale in mid 2013. The story inside.

BMW plans to assemble their electric cars at a manufacturing facility in Leipzig, Germany.  Amongst these vehicles is a subcompact, referred to internally as the "Megacity," which the automaker plans to release midway through 2013 with a different name.

Before that day comes, the company plans to release a limited series of the BMW ActiveE, an electric version of the 1-Series.  BMW development executive Klaus Draeger says the ActiveE powertrain will be tested for use in the Megacity.

Although locations outside of Germany actively lobbied BMW to get production of the Megacity, the company told reporters from Automobilwoche they chose Leipzig for the existing factory's flexibility and capability for increased capacity.  Parts will also be built in Wackersdorf and Landshut, with Lithium-ion batteries coming from SB LiMotive, a joint venture between Bosch and Samsung.

A heavy use of carbon fiber will help keep the Megacity lightweight.  A joint venture with BMW and SGL Group will produce a carbon fiber fabric that will later become carbon fiber reinforced plastic.  The automaker has not said what parts will be made from the material.

Gallery: BMW Announces Megacity EV Will Be Built at Leipzig Plant