THE launch in Turin of the new Fiat 500, the successor to the iconic Fiat of yesteryear, was a huge extravaganza costing 8m.

Eight hundred old models, first produced 50 years ago, were brought in to parade around the city in celebration of the new arrival. The Cincequento was the car that helped war-weary Italy get off its knees and give affortable transport to the masses. It did for Italy what the model T did for America.

But now the hype is over, what is on offer? Fiat is flush with money and there was an open cheque book to produce a model with top-quality build and style.

Fiat's marketing people hope to have the same publicity and success with the 500 as VW had with their new Beetle or BMW with the current Mini.

Fiat has pulled out all the stops to get this small car right. It was built in half the time it usually takes to get a new model from design stage to the forecourt thanks to virtual engineering.

This technique is used in the aircraft industry where metals, technology and designs are tested on computers. The 500 was built in 19 months after the design was agreed.

Fiat also cleverly opened an internet site and encouraged users to make suggestions.

Marketing bosses were amazed at the four millions hits on the website and some of the ideas are included in the new model. "It has got to be a good car . . . four million people helped to build it, " a Fiat executive said.

Fiat is speaking of a five-year warranty for the new model . . .

current Fiats have a four-year warranty. And on the cards, too, is a dealer collection-and-return to and from the owner when the car needs a service.

But sadly for Italians, the 500 will not be built in Italy but in a Fiat plant in Poland, presumably for economic reasons, where Ford will also build the new Ka, which will be using the same platform as the 500, and the Panda. The new Fiat arrives here late in the year for 2008 sales but the Ka will be almost a year later.

Because of the expected high demand, supplies will be limited here initially and Fiat are already taking orders.

For Fiat, this is the most important car they have produced in 50 years. There are said to be half a million trim combinations so there is lots of choice. The three trim levels are Pop, Sport and Lounge with a huge array of accessories for customising.

The bubble-shaped body with short overhangs front and rear gives the car an on-the-move look and there should be few complaints here. The test model had seven airbags but items such as air conditiioning will come at a price. The 500 will sell at a level above the Panda. The build quality is top class and the small exterior belies the interior space.

Pricing has yet to be announced but indications are that it will not be sold cheaply like the model of 50 years ago, although there is still raw metal on the dash, some will be delighted to hear. Expect to see the quality reflected in the price tag.

For the driver, city parking will become a joy with the compact design and the parking button to make the steering extra light.

Gear changes are slick . . . the 1.4litre engine has a six-speed transmission . . . and there is good visability. The 500 is a twoperson for fun car or a fourperson utility transport, as the rear is a bit cramped when it comes to legroom. The boot is urban traveller size.

Initially there will be two engines on offer. A short test drive in the 1.4-litre 100bhp provided plenty of fun but the pokey performance was not as mindblowing as expected, possibly because of the lack of mileage and/or the weight of the car. More about this later when the 500 arrives here. The second engine will be the 1.3 multijet diesel, which is a big success in the Panda and Punto providing lots of torque and economy. The diesel on offer here is expected to be the 75bhp output unit but will be costly. Irish motorists are very cost conscious when it comes to small cars and Fiat should also look at bringing in the 1.2-litre 8V 69 bhp engine, which would bring prices down.

VITAL STATISTICS

Model Fiat 500
Engine 1.4 16V 100 bhp petrol
Length 3,546 mm
Width 1,627 mm
Height 1,488 mm
Wheelbase 2,300 mm
Acceleration 0-100km in 10.5secs
Top speed 82 km
Transmission 6-speed manual
Economy 6.3L/100km
Price 15,000 approx
CO2 Emmissions149g/km