Now being developed in Brazil, the sub-B "new Uno" will replace the current Uno which is still built in Brazil (above, in Mille Way format) and is the national market's entry-level car of choice. In fact Fiat Automóveis envision the original Uno remaining in production until 2014. Kicking off the new 'low-cost' brand's range, will be a tiny urban car, presently dubbed the 'Topolino' which will be a spiritual successor to this historic model 9above) and will replace the 'Seicento' (which is still in production in Poland and sold on certain European markets including Italy). Launched in 1996 the B-segment 'Project 178 World Car' Palio has seen four comprehensive facelifts and has spawned a series of derivatives based on its architecture, including a sedan, estate (above, in 'Adventure' format) and pick-up.

Fiat CEO Sergio Marchionne has confirmed that the group is pressing forward at pace with its ambitious plans to launch a new standalone low-cost brand, eventually comprising of three new models, by 2010, taking advantage of the current economic climate that is seeing consumers seeking smaller, cheaper and more efficient cars.

In an interview with Automotive News Europe this week, Marchionne said he wanted Fiat to become the Wal Mart of the automobile industry. "I am looking at the fast-changing automotive world and am saying: "Which part of the chess board do I want to be on?" he told ANE. "I want to become a serious player in the low-cost-cars corner of the chessboard at the speed of light."

Marchionne has always been an avowed admirer of Renault's low-cost, Romanian-based Dacia brand (bought by the French carmaker in 1999) that has seen its sales climbing impressively ever since the all-new Logan was introduced in 2004. Other major carmakers are rushing forward with plans to introduce standalone cheap brands.

Three new models, all currently pressing through the development phase, will form the basis of the new low-cost brand. Project 326 and 327 are now being developing by Fiat Automóveis in Brazil. Project 326 will replace the current Palio model which itself was the much-vaunted first member of the last attempt by Fiat to develop a "world car" for developing markets. Launched in 1996 the B-segment 'Project 178 World Car' family's Palio has seen four comprehensive facelifts to date, and it has spawned a series of derivatives based on its architecture, including the Siena (sedan), Palio Weekend (estate) and Strada (pick-up). The Palio is currently assembled in Brazil, Turkey, North Korea and India; it has also been built in China and South Africa, and is set to be manufactured in Russia.

The second member of the new low-cost brand will be a new sub-B segment (B compact) model, dubbed the 'New Uno'. Also being developed in Brazil, the new Uno will replace the current Uno which is still built in Brazil and is the national market's entry-level car of choice. In fact Fiat Automóveis envision the original Uno, which is now called the Mille, remaining in production until 2014.

A third model will kick off the low-cost range, this tiny urban car, presently dubbed the 'Topolino', will be a spiritual successor to this historic model and replace the 'Seicento' (which is still in limited production at the Tychy factory in Poland and sold on certain European markets including Italy). The 'city' car will be built on a shortened version of the highly versatile Panda platform and will use a range of engines including the brand new 900cc SGE unit; it will be pitched at less than 7,000 euros. Upmarket versions are expected to be restyled and badged by Fiat and Lancia.

News though in the ANE article is that the new low-cost brand will be sold across Western Europe to slot into the void left by the current economic downturn. This also means that the new C-segment fiat Linea sedan, which several Western European importers have expressed keen interest in selling, will be considered to be added to this range. The Topolino and 'new Uno' (both of which will be restyled for the European markets from the Brazilian versions) are scheduled to be built at the former Zastava factory in Serbia, while the joint-venture Tofaş plant at Bursa in Turkey (which currently manufactures the Palio and Linea) is also being considered as a base. All three of these models will arrive between 2010 and 2012.