In the early 1970s, the British Wilson Government had ideas to encourage the development of small cars for use in large cities. There was an interesting, but little known feasibility study carried out by AC Cars Ltd. on the possibility of manufacturing a new generation of city cars or “Town cars”.
As a result of this study, AC came to manufacture three microcar prototypes, all of them powered by the successful Steyr-Puch engine that used on the Model 70 3-wheeler for the disabled.
The first prototype and second prototypes were 3-wheelers, which in appearance resembled certain models in the Reliant range.
The third prototype was a small four-wheeled car with the same mechanical base. It used at the factory until they were sold about ten years later. All three prototypes are believed to still survive, but none of them in the UK.