Fiat 500 to get a new 900cc engine

Fiat says that the new engine will offer the same performance as a larger naturally-aspirated four-cylinder engine, and therefore fuel economy will be improved with the new engine. The new engine is also 20 per cent lighter in weight and more compact in size compared to a 4-cylinder engine with the same output.

The new 900cc two-cylinder petrol engine will be turbocharged and features Fiat's Multiair system, which controls the intake valves depending on the horsepower needed. "This is the maximum expression of the concept of downsizing, offering lower consumption and emissions without impacting performance," Fiat Group CEO Sergio Marchionne said.

The new two-cylinder unit is expected to be offered in two variants, producing 80bhp and 105bhp. Both engines will be turbocharged, while Fiat also has plans to introduce a 65bhp naturally-aspirated version, also equipped with Multiair, while a CNG version is also in the works. The engine is expected to find its way into other Fiat models like the Panda and Punto in the near future.