State-of-the-art engine technology, rebranding of models and 26 new launches in the next 24 months – times have never been busier for Fiat.

Last week Irish MD Adrian Walsh laid out his plans for the future at the launch of the Fiat 500. It has an award-winning TwinAir engine which performs more cleanly and efficiently than much larger petrol engines.

Fiat claims its small two-cylinder engine is the cleanest mass-produced engine in the world and forecasts that, as the new technology goes into larger engines, it will herald a return to petrol power as it becomes more costly for diesel alternatives to keep pace with TwinAir and Multiair developments.

The exciting new 875cc engine uses two cylinders to put out 85bhp. It is more powerful and fuel-efficient than the 1.2-litre four-cylinder unit which is still an alternative for the 500. It is 25% more powerful and CO2 emissions and fuel consumption figures are down 15%. Maximum torque is 145Nm at 1,900rpm. Top speed is 171kph and 0-100 kph takes 11 seconds.

The beauty of the new engine is that it puts out a mere 92-95 g/km of CO2 (depending on a clutchless dualogic or five-speed manual transmission). Fuel consumption is given at four litres per 100km, excellent news after a four-cent jump in petrol prices.

The fuel economy is achieved with the much lighter two-cylinder engine and the addition of stop-start technology and gear shift indicator on the dash. The new engine is almost a quarter of the length of the four-cylinder unit which means there will be room for a hybrid unit to be added in the future to give even better fuel consumption and emissions. ESP and seven airbags have helped the 500 TwinAir to achieve a five-star Euro NCAP safety rating.

New technology comes at a cost, as there are no added tax benefits for this new low emission level. The 500 TwinAir will sell at €14,295 for the entry-level version which is almost €1,600 dearer than the 1.2 litre version which will probably be the better seller for some time.

Fiat will distribute Chrysler and Jeep here from 1 June. A new Jeep Compass with a 2.2-litre turbo-diesel engine and a Jeep Grand Cherokee with a revised three-litre turbo-diesel will be on sale from June/July.

In future, Chrysler and Lancia are to be merged. The Chrysler name will be used here and in left-hand-drive markets the Lancia name will be retained. The Dodge brand name will disappear here but after-sales support will be available at Chrysler and Jeep dealers.

The Dodge Journey will be reconfigured as a Fiat model; the new Journey will go on sale in spring with a heavily revised cabin and chassis and new Fiat engines.