As Fiat Automóveis build up to the Brazilian launch of the final facelifted Palio model this quarter, heavily disguised prototypes of the Palio 1.8 R have been spotted around Betim, confirming that they see this sporty version as integral to the new model's launch.

The Palio 1.8 R was launched in December 2005, designed as a sporty but cost-effective model, and targeted at the more adventurous, youthful car buyer. The Palio 1.8 R  was immediately recognisable due to its visually impacting deep, colour-coded front and rear bumpers, a jutting tailgate spoiler, and 'Abarth' style 14-inch alloy wheels which were shod with 185/60 tyres. The enveloping front bumper featured high-powered round foglamps as standard, while the rear bumper incorporated a lower slatted section with reflectors mounted in cut-outs to either side that match the front styling layout. The car had much unique branding with its 1.8 R designation emblazoned onto the side door, tailgate and on the sill plates, as well as detail changes such as darkened headlight back plates.

The facelifted Fiat Palio, the fourth in the C-segment hatchback's history will see the car attaining greater proportions, pushing its market perception towards more affluent buyers who demand greater refinements and luxury to match their broadening horizons. The new Palio will have a restyled front and rear end, drawing many of its cues and overall shape from the Grande Punto, helping to prepare the market for its arrival.

As well as minor interior changes, including revised instruments, the Palio may receive the new Fiat Powertrain built 1.8-litre 16v 4-cylinder engine, which has been developed from the 1.6-litre "Torque" engine, and which is set to be built at the Cordoba factory in Argentina. The development lead time of this engine is one of the reasons why the commercialisation of the new Palio has been set back; while the local media has recently speculated that this unit could debut in the new 1.8 R version instead of the standard model. However its market arrival could well wait for the arrival of the Grande Punto which is scheduled to use the unit. Standard and optional equipment will improved, as will the car's safety features. The existing Palio Fire model will be retained in the range as an entry-level version.
 

A facelift Palio Weekend (and off road Adventure version) will also be launched this year. While the front end will closely follow the appearance of the hatchback, Fiat Automóveis' design team have reportedly been highly impressed by the 'estate' styling of the Alfa 159 Sportwagon and will incorporate its stylish lines into their new model.

While the new Palio 1.8 R could be a recipient for the new 1.8-litre engine developed by FPT, although a safer option would be to use the current 4-cyl transversely-mounted 1.8-litre Flex engine which, in the current 1.8 R model, offers 113bhp at 5,500rpm when running on petrol, and slightly more at the same revs - 115bhp - for alcohol. Maximum torque comes in at 17.8Kgfm at 2,800rpm on petrol, and 18.0Kgfm at similar revs when using alcohol fuel. The existing Palio 1.8 R is 3.827 metres in length; the new model will be slightly longer than the car it replaces, and will again feature mildly revised, sporty suspension settings; while optional 15-inch wheels will be offered in place of the current model's 14-inch ones. The 1,025Kg weight of the existing car will rise very slightly, although their is no indication about performance. (The current model accelerates from 0-100km/h in 9.2 seconds).

The Palio 1.8 R has proved to be a popular addition to the range and is exported to several other Latin American countries including Argentina, Venezuela and Mexico. The more bulky styling of the new Palio will help prepare the way for its replacement by the Grande Punto within a year's time. The Brazilian-built Grande Punto though will be significantly different under the skin from its best-selling European counterpart, with revised mechanicals and a locally developed interior, including the dashboard. It will also use new engines, including the FLEX unit. The São Paulo Auto Show last autumn was originally chosen as the venue for the launch of the fourth-generation Palio, but delays mean that its introduction has been put back to this quarter.

Additional reporting by Claudio Perlini