The rumour mill has been working overtime when it comes to the BMW Z2 concept. At one stage, we thought it was going to be cancelled, but new reports indicate that the baby Z Bimmer project is alive and kicking.

Adding to the speculation, BMW enthusiasts’ website BimmerFile believes that the concept will debut at the Frankfurt Motor Show this September.

All going as planned, the Z2 would hit the market around 2013 and would be based on the next generation of BMW’s 1 Series architecture.

It may be nothing more than wild rumours, but BimmerFile claims the Z2 could be configured for front, rear, or all-wheel-drive,  coming in at around 1000kg and powered by a range of four-cylinder petrol and diesel engines.

A plug-in hybrid is also featuring in the whispers, as has the appearance of BMW’s Efficient Dynamics technology.

One of the more interesting rumours floating about puts a sequential transmission in the small Bimmer, borrowed from BMW’s line of high-end motorcycles behind the engine.

So, if it eventuates, BMW may be attempting to give drivers the best of both worlds: a spirited drive and exemplary fuel economy.

All of this should be taken with the proverbial grain of salt until BMW makes an official statement, but we’ll be watching closely for when that happens.