It will be launched early in 2006, and will be fit into the new Fiat range alongside the existing Punto.
In spite of the Grande Punto's extra space, the Italian manufacturer intends to differentiate between the two Puntos by making the new one a cheap version of the existing model.
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As such the entry level option it is likely to offer few frills, but it will be available in 1.2, 1.6 and 1.8-litre petrol engine options. A turbocharged version of the 1.6 petrol as well 1.3 and 1.9-litre diesel models will complete the line up.
Expect to see the cheap new Fiat Punto in coupe cabriolet mode at some point soon, following in the footsteps of the new Renault Megane CC and the cheap new Peugeot 207 CC.
The cheap new Fiat Punto will share its platform with the new Vauxhall Corsa. The Italian manufacturer hopes that the car will be able to hunt out its own niche in a market already crowded by the likes of the new Volkswagen Polo, the cheap new Ford Fiesta and of course the Vauxhall Corsa.
Available in three or five door and with its extra space and so many engine options Fiat is catering for a lot of different customers with the new Punto. So many in fact that it is hard to see how it will fail to win fans in some corner of the market.