The information comes from Peter Oberndorfer, an Audi spokesperson, in an interview with Car Advice published on Tuesday. According to Oberndorfer, the cost and complication of getting the last S1 to production diminished the line's chance of continuation. Pair this with their focus on other projects like electrification, odds were even worse.
"[The S1] was quite an investment. It was a great car, I had one in my house, but nowadays we have to focus more and more [on other projects] and it’s getting more and more difficult.”
Oberndorfer instead directed interested enthusiasts toward the A1. Offering 200 horsepower through the Volkswagen Polo GTI engine, it should offer everything the S1 would have given you.
As for the A1, your guess is as good as ours.