Sergio Marchionne said: „Fiat in Europe is the biggest player in the A-segment [minicars] and we are reluctant to concede market share. Therefore, in late 2009 we will probably launch a car that is much smaller than the 500 and built on a shortened A-platform. The only other thing I can say is that the styling model that I saw of this car is a true beauty.”

At about 3200mm, Fiat's potential microcar would be 300mm shorter than the Panda, but still seat four. It could replace the 3335mm Seicento minicar.

Sources say the Italian company could revive the name Topolino for the rear-engined newcomer.

Separately, head of the Fiat brand, Lorenzo Sistino, recently said Fiat is looking to secure a 25% market share in Italy, a target set regardless of any incentives that the government might offer. In the year-to-November 2007, the Fiat brand controlled 24.14% of the home market (2006: 23.39%).

For the European market as a whole, the Italian automaker is looking to win a 7% share in 2008. By comparison, the January-October 2007 tally was 6.2% (2006: 5.6%).