It's been rumored for a while that BMW has been working on a smaller roadster that will be dubbed the Z2 and according to AutoBild, BMW executives have now given the small roadster the green light.
The Z2 will be based on the 1 series and will be offered as a roadster and a small coupe, just like the previous Z4. The car was developed under BMW's Project i team and will be a front-engine, rear wheel drive car with a target weight of 2,200 lbs. Powertrain options are expected to be powered by a 1.6L turbocharged engine, an extended range hybrid, and an all electric motor with lithium-ion batteries.
A concept version is expected this fall at the Frankfurt Motor Show and the production version is expected in 2012 or 2013.