Vauxhall will launch a premium supermini to rival the likes of the Citroen DS3.
The small car, due in 2013, could herald a new sub-brand for Vauxhall, similar to Citroen's upmarket DS range.
Vauxhall looks to be following a trend by car makers alongside Citroen's DS, Fiat has its sporty Abarth sub-brand.
Whats the benefit of a sub-brand?
Alex Brownsell, from Marketing explains: 'Car makers are trying to seem to be both mass market and upmarket. There has been a gentle nudging upwards with mass-marketed cars, but there is only so far upmarket they can go.
'So these sub-brands are used for a halo effect, by associating with and giving credibility to the mainstream.'