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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]

REPORT: Fiat plans Smart, Toyota iQ competitor originally appeared on Autoblog on Tue, 23 Dec 2008 18:01:00 EST. Please see our terms for use of feeds.

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