Fiat engineers are hard at work on a low-cost city car, according to sources familiar with the plan.
The new car will have similar dimensions to the Toyota iQ and is being developed to replace the bargain-basement Seicento, which is still on sale in some European markets.
The source also revealed that the much-mooted Topolino city car has now been axed from Fiat’s model plans.
The Topolino was originally intended to be an upmarket urban runabout, but it failed to get the green light because Fiat bosses deemed that “it wasn’t right for the market”.
Fiat had already decided that the two seat, two-cylinder Topolino would probably not come to the UK.
The budget hatchback was intended for developing markets as well as richer Western European countries, positioned beneath the Panda and 500 in price.See all the latest Fiat reviews, news and video