Audi will be employing the Q1 name for its upcoming compact sports utility model after reportedly not receiving a response from Fiat Chrysler to dub it "Q2."

Alfa Romeo holds the Q2 name, something that Audi wanted to use in order to differentiate the new SUV from its Audi 1 minicar, Automotive News reported. An industry source has said that Audi would have paid "significant" money to obtain permission to use the Q2 name, which is owned by Italian luxury automaker Alfa Romeo.

Fiat Chrysler is "not aware" of Audi's efforts to gain the rights to the Q2 badge, the auto group told Automotive News Europe.

A five-door model that is expected to compete with the Mini Countryman, the new Q1 will slot below the Q3 and be sold in Europe in mid-2016. While it may be available in China, the Q1 likely won't come to the United States due to its small size, something that doesn't typically appeal to American buyers.

The Q2 loss isn't a huge setback, but it's disappointing given how Audi hopes to grow its Q-badged lineup before the end of the decade.

Audi has ambitions to unseat BMW as the best-selling luxury automaker by 2020. The company's Q-badged SUV and crossover lineup, which also includes the Q3 compact, the Q5 midsize and the large Q7, should grow from 25 percent of worldwide sales to 30 percent in five years, according to Audi CEO Rupert Stadler. 

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