Europe may come up with a new category of city car, similar to Japan's kei car classification, in order to keep Chinese automakers at bay.

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Ursula von der Leyen, president of the European Commission, has thrown her weight behind creating a class of small vehicles primarily for the European market, and built in Europe.

During her annual State of the Union address, Ms von der Leyen said, "Millions of Europeans want to buy affordable European cars, so we should also invest in small, affordable vehicles, both for the European market but also to meet the surge in global demand."

She called for the creation of a new "E-car" category, with the 'E

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