3 years ago, we reported that Fiat CEO Sergio Marchione planned to boost sales of his Lancia division from 120,000 units to 300,000 units a year by 2010. That did not materialize. Ironically, its sales actually dipped below 100,000 units last year, a record low since acquired by Fiat. Global economic recession is not the one to blame. The lack of competitive products and sensible strategies are. Promises about a new Fulvia and relaunching Lancia in right-hand-drive markets were cancelled as Marchione focused on his new, much larger investment, Chrysler. In fact, the integration of Chrysler into the Fiat empire changed the landscape of Lancia overnight. From now on, the Italian brand will sell a mixture of its own cars (Ypsilon, Musa and Delta) and Chrsyler's vehicles (200, 300 and Grand Voyager) under its own badge in European continent. Vice versa, these cars will become Chryslers in the UK and Ireland where Lancia has been absent since 1993. Is it good to Lancia ? Frankly, I am not sure. On the positive side, Lancia will immediately get access to the UK and Ireland market without needing to spend heavily on setting up sales and servicing networks. Its product portfolio also becomes much more complete. On the down side, the vastly different character of its American-sourced products may confuse customers on what the brand stands for. This mean, in short term the collaboration might bring extra sales immediately, but in longer term its success or failure will depend on how their future products harmonize.


The new Ypsilon is the first product affected by the new strategy. In other words, it will be sold as Lancia Ypsilon in Europe and Chrysler Ypsilon across the English Channel. This is the first Lancia returns to the radar screen of English motoring press. Nevertheless, I suppose the Ypsilon line is no stranger to our readers. It was born in 1996 as the direct successor of Y10, then entered the second generation in 2004. We were pretty impressed by the Mk2's styling and packaging, because it was designed as a more stylish and luxury alternative to Fiat Punto. Italian felt the same too, otherwise they would not have snapped up the majority production and kept Lancia surviving.

The Mk3 Ypsilon is no longer a sister car of Fiat Punto, because that car has grown a lot in the process to become Grande Punto, whereas Lancia determined to keep its size unchanged. Therefore this time around it is built on a stretched platform of Fiat 500 (as well as the next generation Panda). The new Ypsilon is a bit longer and taller than the old car, but it is a bit narrower. Wheelbase is exactly the same at 2388 mm, which keeps it at A-segment, though many motoring journalists mistakably compared it with B-segment cars like Ford Fiesta and Volkswagen Polo. The suspensions, steering, powertrains and electronics are practically the same as its Fiat sister, which means development cost concentrate on the exterior and interior packaging.


Outside, the car looks as distinctive and elegant as the last one. Its prominent chromed radiator grille is a rare sight in mini cars, delivering an upmarket image as intended. The clamshell bonnet is mirrored at the other end by a clamshell tailgate, which looks pretty stylish too. Ditto the taillights located at the rear shoulders. The overall shape is noticeably curvier and more graphical than the past. I particularly like the Ferrari 612-style concave surfaces pressed into the doors, the chromed C-rings at the bumper intake and the well-hidden rear doors. By the way, the new Ypsilon has changed from 3-doors to 5-doors in order to lure more family buyers.

Unfortunately, good design does not extend to the cabin. Look at the picture below and you can't help doubting the taste of its interior designers. I don't understand why they designed the instrument binnacle to look as if pop up from the top of console (guys, it's not a sat nav screen !), neither can I praise the aftermarket-like center console. It seems that Fiat's Turin design HQ has failed every interior design in recent years, with the exception of Fiat 500 perhaps. Lorenzo Ramaciotti had better to think about it.


Not just interior design, the ergonomics and build quality are also doubtful. The Ypsilon shares some of the faults of the 500, namely, the lack of telescopic steering wheel and a high-mounted gearstick that robs your knee room. Furthermore, the piano-black console surface causes reflection on sunlight. The centrally-mounted instruments are not as easily visible as traditional ones. The driver seat is too high even at its lowest position, although that might be expected for a cute city car. Visibility is compromised by small glass area, and the cabin looks darker and more confined than in 500. At the quality side, the car tries to be more luxurious than Fiat, but the thin layer of vinyl covering the dash top and doors is no replacement to soft-touch plastics, and the switch gears are cheaper than Lancia wants you to believe. Cabin room, however, is better than expected. Thanks to the 88 mm extension in wheelbase, its rear seat can accommodate a pair of sub-six-footers. Rear knee room is quite generous for such a small car.

The car offers only 3 engines to choose from: 69hp 1.2-liter 8-valve FIRE, 85hp 875cc MultiAir twin-cylinder turbo (TwinAir) and 95hp 1.3-liter 16V Multijet turbo diesel. Sadly, none of them match the luxury pretension of the car. The well-proven FIRE is the most refined, but it lacks punch to deliver the motorway overtaking we prefer. The twin-cylinder engine is a technical tour de force. It should combine greenness with accessible performance. In reality, frugality can be achieved only at Eco mode, which limits rev and output. Otherwise the engine is nowhere as frugal as claimed. Moreover, while the unique twin-cylinder note adds to its character, it is vocal to the extent of annoying on motorway cruising. At low rev, there is some vibration transmitted into the cabin. It might be a great city car engine, but not suitable to the luxury-biased Lancia. The 1.3 Multijet is a little better, but you can still criticize for its excessive noise at push as well as the nose-heaviness and harsher ride brought by its extra weight. Our message to Lancia: please bring the 1.4 MultiAir on board !


As expected, chassis dynamics bias towards the comfort side. Its combination of tall body and soft suspension results in pronounced body roll in corners. If you drive quick enough, it will understeer. On the flip side, the ride is smoother than its Fiat sister, if not exceptional over bigger bumps. The steering is light and easy to drive in town, if a little remote. Overall, it is more comfortable but less fun to drive than Fiat 500.

The Ypsilon is not going to be a class leader. It cries for a better interior, a better engine and more sparkles from the chassis. However, if you want a stylish and upmarket-looking city car that is also capable to seat four adults, there seems to be few alternatives. Taking price into account, the baby Lancia is even harder to beat. That's the advantage of being niche.