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Where there's smoke, there's fire. So it was natural to expect that, with the debut of the mildly facelifted Fiat Punto Evo and its smoked headlights, we might expect an updated version of the fire-breathing Abarth to go with it. And this, according to reports, is our first look at just such a hot hatch.

Fiat's Abarth performance division only has two basic product lines, so how many revisions can it possibly have on the burner? Well, two, as reports emerging from Europe suggest.

Fiat 500 Abarth by Karl Schnorr – Click above for high-res image gallery

The prospect of a stand-alone model from Abarth has been an on-again, off-again proposition. Currently, the revived label is backed by two models, Punto and 500, essentially upgraded performance versions of existing Fiat models. Interests were piqued, however, when the Fiat performance sub-division opened the doors on its new factory that incorporated space for a small assembly line, said to be earmarked for a standalone model. But then Abarth spokespeople said that wouldn't have been enough to

Click above for more images of the Yamaha FZ1 Abarth Assetto Corse

Fiat re-launched the tiny and iconic 500 in Turin, Italy yesterday. Known in Italian as Cinquecento, Fiat is hoping this small car will be hugely poplar with its clean design and made-in-Poland prices. Fiat's hopes for this vehicle are so high, the company is publicly calling it the "iPod of cars."

This diminutive roller-skate of a car, as seen in Car Magazine, looks positively angry. And somehow, I love it. The Abarth 500 is aimed somewhere between a Brabus ForTwo and a Cooper S in size and performance, which is no bad place to be. The 1.4L turbo-four from the sleek, hot Abarth Grande Punto is likely going to put out the same 150 hp and 170 lb.-ft., making a pretty nice way to save a little gas money. If you're in Europe. The wheels are larger than on the base model and where low-profile