You may remember reports last year about UK’s Project Kimber rejuvenating the famous AC badge with a new roadster based on the first-generation Smart car. The new model will be called the AC Ace and is said to have had Gordon Murray, of McLaren F1 fame, involved in its development as well as John Piper, who helped build the JCB Dieselmax land speed record machine.

When the vehicle is finally launched, we may see the introduction of an all-electric version and AutoExpress is reporting that there’s already an electric prototype disguised as a Smart Fortwo undergoing testing. The final version will look dramatically different to the Smart Roadster on which it is based, with former Jaguar stylist Keith Helfet doing the pen work.

In addition to the electric version, AC will also release a conventional gasoline version featuring an 84hp 1.0L three-cylinder engine. The motor will be sourced from Mitsubishi and should also be able to run on bio-ethanol. AC is expecting to build roughly 8,000 units per year but there’s no word on when the model will be launched.