Next generation Fiat Panda due in 2011

Fiat will launch a redesigned Panda in 2011, after CEO Sergio Marchionne lifted a 15 month spending freeze. Marchionne�s spending freeze ran from October 2008 to December 2009 and saw the delay of the new Panda, Alfa Romeo Giulietta and a replacement for the Lancia Ypsilon.

In a telephone conference with financial analysts, Marchionne said launching any major new models last year in the middle of the global financial downturn would have been a �waste�.

�That's the reason why I think we intelligently postponed a number of our programs to make sure that it coincided with what I consider to be a structural recovery in demand in 2011 and later years,� he said. Fiat�s investment in 2009 was 32% lower than 2008�s. In 2008, it stood at �4.97bn (�4.34bn) and will be �4.5bn (�3.93bn) this year.

The Alfa Romeo Giulietta will be launched in Geneva next month � a year later than originally planned. The Panda will be launched in 2011 � two years later than originally planned.

Although information on the forthcoming Panda is scares, it will underpin the current model � which has been on sale since 2003 and styling will be influenced by the current 500 city-car, which itself is based on the Panda.

Under the bonnet, we can expect a 65bhp naturally aspirated , 80bhp � 105bhp turbocharged, 0.9 litre two-cylinder MultiAir petrol engine to be used. On the diesel side, a 1.3 litre MultiJet engine producing 95bhp is expected to be lifted from the current 500. In addition to the regular car, the 4x4 model is in the pipeline, alongside a sportier Panda.

Marchionne has also revealed plans to extend Lancia�s European range by four models in 2011. Rebadged versions of Chrysler�s Sebring saloon and cabriolet, 300C and Voyager will all be added to the Lancia range.