The images clearly show that Fiat is carrying forward the successful format of the current model, while simultaneously recycling the overall design language of the new Brazilian-built Uno – a huge hit in Latin America since it was launched just over a year ago – and reinterpreting its distinct lines for a European audience. Evident in the photos are the retention of the current car’s ‘pillar’ tail-lamps, albeit positioned higher up (reflecting the configuration seen on the Uno), and a general silhouette and design philosophy very much in line with those seen on the Brazilian-built car. The profile and detailing, such as the Uno-alike wheelarches, show a welcome dash of character injected into proceedings, differentiating it from the existing Panda’s functional but rather staid appearance.

Unlike the design of the current car, which was a joint exercise by external design houses Bertone (exterior) and I.DE.A (interior), the new Panda is the work of the team at Fiat Centro Stile. This decision partly explains the evolutionary styling, as recent efforts on the part of Fiat’s in-house stylists – such as the Punto Evo and facelifted Croma – reflect a tendency towards design timidity, rather than the long-held Italian tradition of innovation and breaking new ground. However, as the successor to Fiat Group’s most successful product over the past decade, an evolutionary approach for the next Panda represents a logical path for Fiat to take, given that the Panda – winner of the prestigious European Car of the Year Award in 2004 – has set the standard in the European A-segment since its launch, featuring impressive functionality and dynamics, all wrapped in a highly versatile and cost-effective package. The new model should thus provide all the ingredients to continue the legendary nameplate’s winning formula with customers.

That much is fortunate, since, as was the case with its predecessor, the new Panda will once again face the daunting task of turning around Fiat’s dramatically-declining fortunes in key European markets. When the current Panda was launched in 2003, Fiat’s fortunes were at a low ebb, with plunging market share dominating the company’s sales charts, and red ink flowing freely. The Polish-built Panda, which instantly went to the top of its class, was integral in helping turn the company’s fortunes around, helping consolidate Fiat’s improving reliability record and offering a lifeline to struggling dealers. It has proved consistently successful in winning customers across Europe, even succeeding on occasion in becoming the most popular car in Italy. Although the car has never undergone a true facelift, its continued marketplace success has been aided by the application of the so-called ‘Panda Lesson’ – a deliberate strategy to maintain interest in the model by launching a number of spin-off niche versions, such as the sporty 100 HP, off-roading 4x4, SUV-inspired Cross, and special editions such as the Alessi.

Now, in 2011, Fiat Group Automobiles in Europe finds itself in a similar position to where it was in 2003, fighting persistent losses, massive factory underutilisation and regular double-digit percentage decreases in its sales. (Ironically, it may be said that part of the reason for Fiat’s current troubles is the company ignoring its own conclusions from the ‘Panda Lesson’ about product life-cycle management, by allowing many current models to wither and die on the vine without meaningful updates.) The success of the new Panda is thus vital.

To this end, Fiat has left no stone unturned in its effort to once again assert leadership of the class, against strong competition from both European and aggressively-expanding Korean brands. The new car will be underpinned by an evolved version of the ‘Mini’ architecture which debuted underneath the current Panda, and also forms the basis for the Fiat 500 and new Lancia Ypsilon. These later evolutions of the platform feature improvements to improve torsional rigidity and front-end crash protection, modifications which will be incorporated into the new Panda. Fiat is confident of a five-star Euro NCAP rating – in line with contemporary standards, and necessary to address one of the few aspects in which the existing model (which rates only three stars) seriously belies its age.

Additionally, in an effort to improve the versatility and interior space of the Panda, Fiat is believed to have expanded the dimensions of the new car. While the current model shares its wheelbase with the 500, the third-generation model is understood to share the lengthened version of the platform with the Lancia Y, stretching the wheelbase by 90mm to 2390mm. Length is also expected to increase commensurately, from the current 3.54m to around 3.7m. The engine lineup at launch, meanwhile, will be very familiar to Fiat devotees, with the successful 1.3 MultiJet II turbodiesel providing the oiler option alongside two petrol alternatives – the acclaimed new TwinAir already seen in the Panda’s platform stablemates, and the long-serving 1.2 8V FIRE, which will continue to do service as a low-cost entry-level alternative, allowing Fiat to attract as many customers as possible for this crucial new model.

The new Panda, which is expected to make its world premiere at the Frankfurt IAA in September, will be built at the former Alfa Romeo factory at Pomigliano d’Arco near Naples, a key change as the current-generation car is built at Fiat Automobiles Poland’s Tychy plant.