Fiat is currently developing new petrol and diesel electric-hybrid drive systems for small cars and commercial vehicles which could be successfully rolled out into production within three years time.

Fiat Powertrain Technologies is currently developing new petrol and diesel electric-hybrid drive systems for small cars and commercial vehicles which could be successfully rolled out into production within three years time. The news comes from a report published in Automotive News Europe this week and the plans will embrace models such as the A-segment Panda and 500, as well as the Fiorino light van.

In seeking to add hybrid drive vehicles to its range, Fiat Group will be following in the footsteps of many of its closest rivals; hybrids have become popular options in the race to woo customers with new and environmentally conscious motoring options. The Italian firm will also be cementing its position as a European leader in the selling low-emission cars.

Hybrid cars, such as the popular-selling Toyota Prius, take advantage of varying driving scenarios to switch seamlessly to full electric power over limited distances, thus reducing overall consumption and harmful CO2 emissions. This action is most beneficial during inefficient stop-start process seen in the urban motoring cycle.

By 2012 Fiat CEO Sergio Marchionne wants Fiat to have the most efficient vehicle range on sale in Europe, with the lowest CO2 emissions. This will coincide with expected new European Union legislation that year that will require cars to reach a tough new average CO2 emission per kilometre of 120 grams, a big improvement from the current average of 160 g/km. Fiat has already put much work into improving the efficiency of its small engines: its highly regarded 1.3-litre 16v Multijet turbodiesel will soon be joined by a tiny 900cc two-cylinder petrol unit. The company is also pushing forward with developing hydrogen technology and has fleets of Pandas thus equipped on the European roads.

"We are still in the research phase and, if everything proceeds as expected, we could begin production within three years," Alfredo Altavilla, CEO of Fiat Powertrain Technologies, confirmed to ANE on Monday. For minicars and small cars-reported ANE-Fiat is working on a hybrid system based on the new two-cylinder, 900cc petrol engine that in this application will mate an electric motor/generator to a dual-clutch transmission. For light vans, Fiat is developing a system that puts the electric motor/generator between a four-cylinder, 2.3-liter diesel engine and an automated manual transmission.

The short range provided by the electric motor reflects the low capacity of the batteries that will be used-added ANE, who reported Altavilla as telling them at Fiat is now testing alternative battery systems with several suppliers that he declined to identify. Fiat also says that the small-car system under development could bring a car's CO2 emissions down to below 90g/km.