THE passing year will long be remembered by Fiat as the year the Grande Punto became a sales hit.

This is the car that put Fiat back into the black in bankroll terms after years of losses. It soared in the bestselling car lists across Europe and outsold many prestige models.

The Grande Punto was a timely arrival for Fiat, which had been doing badly apart from the evergreen baby Panda model. The Croma, a crossover vehicle, was not doing well in the review ratings, while the Stilo was uninspiring.

So enter the Grande Punto. This is the latest development in the Punto range, which was first produced in 1993 and was followed in 1999 by the New Punto. The "Large Punto" has class-leading dimensions, which means it's higher, wider and longer than the older model. It is a true super-mini car, and in fact is the first car in that segment to exceed four metres in length. With a good choice of engines it actually encroaches on the C-segment family saloon car segment, where cars are only slightly larger but more expensive.

It comes with a choice of two petrol engines (1.2- and 1.4-litre) and two diesel engines, a 1.3 Multijet with 75 bhp and 90 bhp output in a number of trim levels.

The test car was the 1.3 threedoor Multijet 90bhp with Emotion trim levels. The highlight here is the engine performance and economy. It develops maximum power at 4,000 rpm and produces maximum torque of 200 Nm at just 1,750 rpm. This is the ideal engine for those who want enthusiastic driving without fuel penalties. The engine picks up speed even in high gears, and it is surprising how little gear changing is required. There is plenty of power on tap for overtaking. The top speed is 175 km, with the 0-100 km taking under 12 seconds.

In the economy stakes the Multijet engine is hard to beat, around town 5.9l/100 km . . . about 45 mpg, and 4.6l/100 km, almost 60 mpg, in mixed driving.

Excellent results, and the exhaust C0 2emissions are very low at 122 g/km. This engine will make very good sense when the proposed economy/emissions taxation system mentioned in the budget is brought in by the government and will obviously have an important bearing on residual values.

In terms of economy, speed, acceleration and overall performance, the Multijet 90 beats both petrol engines and the smaller diesel engine. It is the best small engine on the market today, developed as it was in conjunction with General Motors.

But good things do not come cheaply. The 1.4-litre three-door petrol version of the Grande Punto with Emotion trim is priced at 17,095 while the 1.3 three-door Multijet 90 bhp Emotion costs 20,095 . . . a 3,000 price penalty.

Many buyers in this segment will look long and hard at these prices, and in truth it will take a few years to win back the extra outlay. This is a great pity. Diesel engines do cost extra to produce but hopefully an enlightened government will see the value of a big reduction in VRT and taxes to reward the buyers of cars which will require less fuel imports and help to create a greener atmosphere for us all.

The Grande Punto scores well on safety with a five-star Euro NCAP safety rating for adult passenger protection, three-star for child protection and three-star for pedestrian protection. There are a few niggles . . . there is a long reach for the driver and front passenger seat belts, too few good storage areas and the hefty tyres create a lot of interior noise when the car is being driven at 100 kmplus on motorways. The rising interior noise levels in small cars is becoming an increasingly common problem and manufacturers should get to grips with this as soon as possible.

The specification on the Emotion level includes electric steering with dual drive for town and country driving, anti-lock brakes with electronic brakeforce distribution, height and reach adjustable steering, steering mounted audio controls, remote locking, six airbags, 16" alloy wheels, air conditioning, wing mirror demisters, split rear seat and fog lights.

VITAL STATISTICS Fiat Grande Punto three-door 1.3 Multijet diesel 90 bhp 4,030 mm 1,687 mm 1,490 mm 2,510 mm 11.9 secs/100 kms 175 kms six-speed manual 4.6 L/110 kms 20,095