Fiat To Produce Budget City-Cars

Fiat plans to launch a new line of low-cost cars in Western Europe by 2010. This new brand would be aimed at budget-conscious consumers at the tail end of the global recession.

Fiat could also launch a revised version of the Seicento city car in 2011, according to industry sources. It will be extremely light weight and will probably be powered by a very frugal two-cylinder engine.

The car will most likely be targeted at the growing market for ultra-compact city cars, but will be much less expensive than either a Smart or Toyota IQ. There’s no actual news about prices yet, but the new Seicento could be priced as low as $8,100.

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