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Looks like the world will not be getting a smaller Mini. BMW says that the 3.4m long, baby Mini, the Rocketman, would probably sell, but it would cost too much to engineer it to handle, perform and be safe enough to qualify for its standards.
For reference, the original Mini was even smaller than the Rocketman. It was 3.05m long. A modern Mini Cooper is about 3.7m long.
The Rocketman would have gone into production in 2016. It was originally shown at the 2011 Geneva Auto Show.
Car reports that Mini has several new models planned that will come out over the next several years.
Source Car
EncyclopediaMINI (BMW)RocketmanRocketman | Engine -- Displacement -- Top Speed -- Transmission -- Maximum power -- Type Hatchback Fuel -- Fuel consumption (combined) -- | price -- annual ownership cost -- |