There were many rumors about the Audi Shooting Brake concept going into production. Early information showed that it was supposed to be placed above the TT as a sportier model. Updated sources, though point that the new car will be a sub-compact, positioned under the A3 and intended as the cheapest Audi in the line-up. It will be most likely called A1 and is expected for launch in 2009.
here is currently known that Audi has in development a sub-compact vehicle Based on the Golf IV PQ34 platform. The new model, which will be most likely called A1, is the successor of the discontinued A2.

The A1 will not be a lot smaller than the A3, but it will consistently cheaper with prices ranging between $16,000-20,000. The cost reduction can be achieved due to the use of the VW Golf IV platform with a semi-rigid rear axle, a lot cheaper than the multi-link. In addition, the body will be made from steel, not aluminum, as used in the A2, further reducing production costs.

Some think that the A1 will also be available with Audi’s ‘quattro’ 4WD. We do not think that that is going to happen as this type of transmission is quite expensive and. therefore not suitable for a low budget car. The Syncro cheap 4WD system used on the Golf III cannot be used because it excludes the ESP and therefore cannot meet modern safety standards.

The engines available for the A1 should be those from the TDI and FSI ranges. TSI and TFSI are expensive and performance orientated, which makes them less likely to be offered for the new Audi base model.

To prove its Audi genes, the A1 will feature the single-frame front grille, a dynamic sideline, large size tires, short consoles and small side windows. Besides the hatchback, a roadster and a cabriolet are also considered to expand the A1 range.

The A1 sedan is expected to be launched at the 2009 Frankfurt Motor Show, and the convertibles should first be shown in 2010. Still for cost reduction purposes, the location where the A1 will be built is likely to be outside . The most suitable location seems to be the Gyor production facility in Hungary.