Fiat plots a diesel onslaught

Fiat will adopt a diesel strategy as its key selling point when it resumes selling passenger cars here -- after a 17-year hiatus -- in June. The Italian marque previously sold cars here until 1989 before a staid image and a reputation for dubious reliability finally put paid to its local prospects.

However, newly appointed Fiat Australia boss David Stone told CarPoint at the Melbourne International Motor show that the brand doesn't have any negative baggage to contend with, as the target audience for the new Grande Punto will be too young to remember the bad old days.

Stone suggests the funky styling of the Grande Punto (likely to be simply badged Punto here) and a range of diesel engine options will make it an appealing alternative to the existing small hatchback contenders.

In Europe, the car is available with a choice of four Multijet turbo-diesels -- 90kW and 96kW 1.9-litre units, a 55kW 1.3-litre and a 66kW 1.3-litre with a variable geometry turbo. There are also two petrol units -- a 48kW 1.2-litre and a 57kW 1.4-litre.

Stone wouldn't elaborate on exactly which engines we will receive, but he hinted that diesel would be a key component in the brand's marketing strategy. Fiat won't be the first diesel contender in the small-car segment -- Volkswagen is already represented via the Polo and Golf, Peugeot is there with the 307, and even Holden is on the verge of jumping into the fray with a 1.9-litre turbo-diesel variant of the Astra.

In terms of size, the Punto is virtually halfway between two segments. Measuring 4030mm long, 1680mm wide, 1490mm high and with a wheelbase of 2510mm, it's larger than a Volkswagen Polo, but smaller than a Golf.

Stone says the car's high spec levels and attractive styling (we can confirm that it looks good in the metal) will enable it to carve a niche in the cut-throat small hatchback segment.

Fiat cars will initially be sold through 25 existing Alfa Romeo dealers, but the retail network will grow as the brand gathers momentum, according to Stone. The Punto (available in three- and five-door formats, and three trim levels) will be the only product in the line-up at launch, but Stone says other models will join the range in due course.

Pricing? No official word yet, but expect the Punto to kick off around the $20K mark.