In an interview with Auto Express in Detroit, Mercedes-Benz's CEO said the company isn't working on a smaller car.

Dieter Zetsche mentioned that in the near future Mercedes won't develop an Audi A1 rival because in the supermini segment profits are low and building such a car requires large volumes. Filling this gap will be a new generation of the Smart lineup which will debut at the beginning of next year and is being co-developed with Renault, despite the latest contradicting rumors.

What's more interesting is that Zetsche has not ruled out the possibility of a partnership with Aston Martin, a rumor that has been going on for a couple of months. He added that if there will be such a collaboration between the two it "would have to be on a special basis."

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Mercedes not working on A1 rival, Aston Martin tie-up not ruled out

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