We've been hearing rumblings that BMW and Fiat were working together on the development of future small vehicle platforms for a while now. With the German automaker working on an Isetta revival and the Italian firm moving forward with a new Topolino, it makes some sense that the two companies would join forces on a single platform sharedbetween the two small retromobiles.

According to Auto Express in the U.K., work is far enough along that we could see both new city cars by 2011. If current rumors are accurate, the cars will feature a rear-mounted engine and four seats, putting the machines on par with the new Toyota iQ and upcoming Up! from Volkswagen. AE says that light weight would be ensured through the use of aluminum and carbon fiber for the chassis and possibly even plastic bodywork, and if that's the case, we can't see these being anything less than premium-priced.

An electric drivetrain featuring one motor for each of the four wheels and a thin battery pack sandwiched under the passenger compartment is also likely. If there's any truth to these rumors, we could see a concept vehicle on the new platform wearing a Mini badge at the Frankfurt Motor Show later this year.

[Source: Auto Express]

Fiat is rumored to be working on an all-new brand to launch small, inexpensive cars into the Western Europe, with two of the three proposed models being based on vehicles from emerging markets. The third is much more interesting. The new supermini, which could revive the Topolino moniker, is expected to get a new twin cylinder engine that could offer as much as 65 mpg when mated to a dual-clutch gearbox. Naturally, Fiat is targeting the smart fortwo, Toyota iQ and the upcoming up! minicar from Volkswagen, but the automaker is said to be working on a pricing model that more closely matches Renault's low-cost Logan subsidiary. In other words, Europeans may get an efficient, stylish Italian city car that's priced to compete with upper-end motorcycles as basic transportation. Electric versions are also a distinct possibility. Unfortunately, as is often the case, Americans are likely to miss out on this one.

[Source: Autocar]

We see a lot of rendered speculation on upcoming models, but they're seldom penned by renowned designers. However as Fiat prepares to revive the classic Topolino, Italian magazine Ruoteclassiche commissioned designer Paolo Martin – former of Bertone, Pininfarina and Ghia – to render his interpretation of how the tiny retro runabout could (or should) look.

Martin says he strove to "maintain the original spirit" of the Topolino, "with similar proportions, protruding front end and fenders, a nearly-identical grille, circular headlamps, short rear overhang and spare tire covered and integrated in the rear tailgate." The Topolino will be built at Fiat's newly-acquired Zastava plant in Serbia as a budget city-car, positioned below the 500, and despite Panda/500 underpinnings could get a rear-engine layout for the 0.9-liter two cylinder engine with DSG and start-stop technology.

[Source: Car Body Design]

Earlier this month we brought you news of Fiat's acquisition of Zastava and the Italian automaker's plans to use the retooled Serbian plant to produce a new city car reviving the old Topolino nameplate. Auto Express has brought its resources to bear and cooked up a pair of renderings of what form it thinks the new micro-car could take.

Looking something like a cross between a 500 and a new Renault Twingo, the Topolino rendering suggests a melding of the 500's retro touches with more modern lines. Although the car is expected to be based on the Panda platform, Auto Express suggests the Topolino will have a rear-engine/rear-drive layout, along the lines of the Smart ForTwo, Volkswagen up! and Toyota iQ, three models which the little Fiat would go up against in the marketplace. Innovative seating is tipped to help maximize its compact interior dimensions. Fiat has a wide array of compact engines that could appear in the Topolino, including the upcoming 0.9-liter two-cylinder gasoline engine previewed by the Panda Aria concept. With a DSG and start-stop system, the Topolino would help Fiat lower its range-wide carbon footprint.

[Source: Auto Express]

If you told us a year ago that Fiat was going to sign a deal with the government of Serbia, we'd have laughed. But that was before the country announced that it was accepting tenders for investment in the state-owned automaker Zastava, makers of the famous Yugo (aka Skala 55). The process started back in December when the Serbian government made the announcement, sparking interest from various automakers. But even as recent as last week, the Fiat stance was that it was still considering the proposition. Well, it appears the Italian auto giant has done thinking, and has signed a memorandum of understanding with Serbia to establish a joint venture that involves Fiat investing a staggering 700 million euros (!) into Zastava's manufacturing facilities in exchange for a majority stake in the company, known in full as Zavodi Crvena Zastava. The Serbian government, meanwhile, will contribute some 200 million euros through tax incentives and similar measures.

Fiat has revealed that it will use the Zastava plant to produce the upcoming Topolino microcar. The vehicle will be based on the same platform as the 500 and Panda, but even smaller and positioned below either model, and share the same name as the concept car that previewed the new 500 and originally used on the 1936 runabout pictured above. According to reports, the new Topolino will be a compact two-seater measuring just 3150mm (124 inches) in length, slightly longer than the Smart ForTwo at 2692mm (106 inches). A four-seater version is expected to follow, in addition to an upscale version for the Lancia division.

[Source: Automotive News Europe – sub. req'd]

Fiat has confirmed rumors that it is developing a new low-cost world car. However while earlier reports suggested a single small car was under consideration, a senior company executive revealed that Fiat is actually developing two new models.

The first will be a B-segment car positioned above the Panda but below the Grande Punto, the latter of which went up-market in its current iteration over the previous model. Eying the success of Renault's low-cost Dacia range, Fiat is toying with the idea of spinning off the car, currently dubbed the "new Uno", as a separate brand. Over the years Fiat has absorbed a wealth of Italian auto brands and, as it did with Abarth, could revive either the Innocenti or Autobianchi marques.

The second vehicle, tentatively carrying the same "Topolino" name as the concept which previewed the new 500, will be a microcar based on and positioned below the Panda, with both expected to hit the market around late 2009 or early 2010.

[Source: Auto Motor und Sport and Italiaspeed]