MUNICH, GERMANY – It was reported BMW is considering production of an all-electric Zero Emissions Vehicle (ZEV). Originally developed in answer to California regulations requiring large automakers to sell a number of ZEVs each year starting in 2012, according to a report in the UK’s Autocar, BMW may now be planning to offer the vehicle in markets around the world, according to www.motortrend.com.

California’s regulations also allow for Advanced Technology Partial Zero-Emission hybrids and fuel-cell vehicles to fulfill the requirement, among other technologies. However, BMW has said it will most likely go in the direction of an all-electric powertrain, which would also lend itself to the growing number of European cities beginning to regulate CO2 emissions.

In addition, BMW recently created a new unit called “Project I,” which is tasked with developing an eco-friendly city car. There is speculation that the vehicle could be based on the ZEV. Instead of battery power, however, the Project i car would most likely use gasoline or diesel propulsion —- possibly even from a motorcycle engine. According to Autocar, the automaker may work with Austrian company Magna Steyr on the project, or even possibly form a partnership with Mercedes’ Smart.