An Audi spokesperson has denied rumors that the company was fighting with Volkswagen over the Wankel engine in the A1 e-Tron.

Following reports that Volkswagen and Audi were fighting over EV strategies, an Audi spokesperson has told Automotive News Europe "There is no problem between VW and Audi."

This is in stark contrast to what the Financial Times Deutschland reported earlier this week. Citing unidentified sources, the newspaper said Volkswagen "frowned upon" Audi's "anarchist project" to use a Wankel engine in the A1 e-Tron because it would be costly and didn't mesh with VW's corporate EV strategy.

As you may recall, the A1 e-Tron is a range extended plug-in hybrid like the Chevrolet Volt. It features a 75 kW (102 PS / 101 hp) electric motor which enables the car to travel up to 50 kilometers (31 miles) on electricity alone. When the lithium-ion batteries are depleted, a rotary engine-generator recharges them to allow the car to travel an additional 200 kilometers (124 miles). While efficiency data hasn't been determined, Audi expects the A1 e-Tron will have a fuel consumption rating of 1.9 l/100 km (123.80 mpg-US) and CO2 emissions of 45 g/km (72 g/mile).