The new Panda falls into the "sub-mini" segment consists of many Japanese K-cars, Volkswagen Lupo, Renault Twingo, Hyundai Atoz, Daewoo Matiz and the like. Measuring 3.54 meters in length, it is 33cm shorter than its bigger sister Punto but 22cm longer than baby Seicento. While its 2.30 meters wheelbase is shorter than most K-cars (who can beat them in space efficiency?), its 1.54m height is simply MPV-like. People sit high in the cabin, enjoying excellent visibility through huge windows over the low waistlines. The bright and airy cabin has plenty of headroom and decent legroom to fulfill the task as a city car. Wide-opening doors aid easy access. The one-piece plastic dashboard is dominated by a big center console on which gear lever is mounted. The latter makes gearshift more relaxing. In terms of materials, it doesn’t set any new standard, but with some soft-touch plastic and decent cloth trim, it feels far better made than Korean mini cars. 

Now you start understanding its design philosophy: this is a no-frill car. Functions and practicality are put in first place. The same goes for exterior styling. Here, I must admit my disappointment that it lost the charming style of traditional small Fiat, say, Uno, the old Panda and Punto Mk1. Like the recently facelifted Punto, the new Panda proves that Fiat’s studio needs to be revitalized. It seems that since the 4-line logo was replaced by the circular badge, Fiat’s fortune as well as creativity has been falling. The square, bland and featureless design of Panda is so conservative that even Volkswagen would not adopt.  

However, the new Panda is a much better car to drive than to look at. Its chassis is unusually mature for the class. This means high rigidity, absorbent and quiet ride (even on bad surfaces) and excellent noise insulation. Its FIRE engines are sweet. Although the 54hp 1.1-litre and 60hp 1.2-litre still employ 2 valves per cylinder, they are torquey and never noisy. The 60hp engine is especially lovely, giving the not-so-lightweight Panda a competitive acceleration (0-60mph in about 13 seconds), while 75 lbft of torque is useful for overtaking.  

However, the best of the bunch is the new 1.3-litre common-rail turbo diesel. It’s the world’s most compact diesel engine. Sophisticated multi-jet common-rail direct injection enables it to produce a respectable 70 horsepower and 133 lbft of torque yet returning 66mpg of fuel consumption. And unusually, the diesel engine tops the Panda range as the fastest and most expensive model. 

In driver’s point of view, the new Panda is also fun to drive. Although the skinny tires lack the necessary grip to exploit its potential or to test its suspicious body control, its handling is agile and predictable, while steering is sharp and direct.  

Whether it will succeed is difficult to predict. That will depend on how well people accept its conservative styling. Our first choice is still Daihatsu Mira, as it is a little faster, a little more spacious, a little better built and a little prettier than the Panda, if not as refined. Anyway, the Panda proves that Fiat is still capable of making good small cars. We wish it could help the Italian giant overcoming its darkest days.