Fiat's journey back to the future

Fiat PandaA new Fiat Panda. Four words that normally evoke about as much excitement as a trip to the dentist. Word association paints a similarly unflattering picture: tin box, dinky and rust.

Yet the new Panda manages to overcome all the prejudices held against its predecessor. In its darkest hour Fiat has gone back to basics with a car that's a revelation.

Initially to be called the Gingo, it lost out to Renault who claimed the name was too close to its own Twingo, so the Italians, fearing massive legal bills, reverted to the original.

The name game is unfortunate, for the original square-box Panda, akin to a kitchen appliance on wheels, has little in common with this sophisticated supermini.

Its quirky look, which some may find ugly, won us over and when combined with rather garish colours on offer brings a smile to many passing faces. While the front retains the typical supermini look, the square rear with large c-pillar windows is funky and stylish, somewhat similar to the Multipla. It shows thought and a little imagination by the Italians.

Fiat used to reign supreme when it came to small cars. The Panda name has been on the market for 23 years and has lured more than four million customers; an incredible tally given its truly rock bottom fit and finish. It became the icon of the modern inexpensive Fiat for a generation of young and destitute motorists, following on from the Fiat 500 and 600. It was also a car heavily imitated by the Japanese, who took the idea a step further, adding higher specifications.

Now the latest Panda offers as standard dual airbags, a CD player and remote central locking, one-touch electric windows, and electrically-assisted steering with a selectable City mode for painless parking. All for just under €11,000.

There's more. Customers are set to benefit from the media spotlight on Fiat's future. In an effort to reassure its audience, it's offering a five-year full warranty up to 120,000 miles on the new Panda. What's more, if you trade the car in during that time, you get a refund on the remainder of the warranty. While financial concerns predominate buyers in this market, driver appeal is not normally a factor in a car of this size. You expect howling wind noise and a screaming engine if foolhardy enough to take such a car onto the motorway.

Yet the Panda mixes it with the best of the rest, comfortably handling 70 mph in a relative silence and smoothness you would expect of a large family saloon.

None of the Pandas are going to test the mighty German behemoths on the motorway and pulling from low speeds requires patience, though less so with the 1.3 Multijet diesel due in Ireland early next year. Yet it's a small car that can cope with big roads and we wouldn't balk at going cross-country in this car.

At present a 54 bhp 1.1-litre and a 60 bhp 1.2-litre are available, but the optimum engine in the range will be the 70 bhp 1.3-litre multijet turbodiesel, offering more power and better fuel economy if at a higher cost price. Driving the multijet recently, we easily managed 54 mpg and Fiat claims it can top 60 mpg.

So the key decision will be whether you do the mileage to benefit from the frugality and are interested in that extra diesel poke. For those opting for petrol, with both engines averaging 50 mpg it can manage 500 miles between fill-ups, which come to about €30.

Another impressive feature is that the Panda is arguably the most comfortable ride in the supermini segment. It smothers urban ramps and rural potholes in a way that calls to mind the suppleness of a previous generation of French cars.

Normally the trade-off for such a compliant suspension is a car that wallows into corners. Yet the Panda's handling doesn't turn squidgy, instead leaning in slightly like a gangly runner on a tight bend.

In fact, you could be led into a false sense of security until you realise that your contact with terra firma is via four 13-inch wheels (14-inch on the Emotion). It's a thought that slaps you back to the reality that you're behind the wheel of a small Panda. It's a simple drive that can turn into basic no-nonsense fun if you so wish; all the more impressive given Fiat's previous reputation for inert handling.

According to Marco Vassallo, Fiat's director of small car product development, the Daewoo Matiz was the Panda benchmark. Understandable, as the Matiz was the king of the cute and cuddly segment and seemed one of the best value, until the Panda came along.

The problem with most other city cars is that they appear neat on the outside, but are gloomy and cheap on the inside. Luckily for Fiat, most lack the polish of the Panda.

Despite its compact exterior, the car is more like a mini people carrier inside. It features a tall, airy cabin with no painted metal visible anywhere inside, just cloth and plastic. Certainly there are some rough edges to the finish, but never enough to offend. The gear lever sprouts from just below the well sculpted dash, as in many MPVs.

This is ideally placed for the frequent gear changes that accompany city driving. There's a decent amount of legroom in the back, which can carry three. Perhaps the most questionable interior feature is the garish and potentially stomach-churning trims, which may not go down too well here, given our conservative motoring tastes.

There are other limits to the Panda. There's an awkward height adjuster for the driver seat on the higher specified models (Dynamic and Emotion) that's easily confused with the handbrake. So you could find yourself rising into the air rather than holding still on a hill.

The boot is also a tight squeeze. However, thanks to the extra height, shopping can be stacked high and there is the option of split rear seating or a slideable rear seat that releases extra space.

If we were to choose, we'd opt for the 1.2-litre Dynamic. At €12,395 it's still cheaper than many of the competitors (particularly as there's no hidden delivery charges etc with Fiat prices) but includes ABS and a proper fitted stereo as standard, along with a little extra pulling power.

According to Vassallo, we can soon expect a 4x4 version. Speaking to Motors he said we will also see a souped-up version with a bigger engine - probably 1.4-litre - and firmer suspension. This would herald the arrival of a three-door body alternative, which will replace the lacklustre Seicento.

Fiat is said to have invested about €560 million into the new Panda, and given its dire financial straits will be hoping for a profitable return.

Impressions after driving the car for a week would suggest there should be a positive outcome. Ironically, in spite of Fiat's Italian credentials, its latest Lilliputian star is built in the appropriately named Polish town of Tychy. Fiat's future may well start there.