FIAT perfected the art of making small cars with impressive engines and masses of equipment many years ago, and now the company is ideally placed to accommodate the tidal wave of downsizers.
The headline-grabbing Fiat 500 is proving to be something of a sales sensation, thanks in no small part to its classless image.
Just like the MINI, owners of the Fiat 500 may well have a Ferrari or some other supercar in their garage but for modern motoring in the real world the baby Fiat makes more sense.
Small and easy to park, it costs from under £8,000 and comes with a choice of petrol and diesel engines with economy of up to 55mpg, performance nudging 105mph and as much equipment for comfort and safety as might be expected on cars costing five times the price.
In the case of models fitted with the latest Stop&Start technology exhaust emissions are slashed from 119g/km to a new low of 113g/km.
The system is available on the best-selling 1.2-litre petrol-powered Lounge version of the Fiat 500, which costs £9,500 in Stop&Start guise, which is an increase of just £200.
Fiat's Blue&Me hands-free telecommunications and entertainment system is standard on 500 Start&Stop, which means the car also benefits from eco:Drive, which is the system that allows drivers to monitor and improve their CO2 emissions and economy.
Fiat has also added an ECO model to its Panda range with improved economy and lower running costs.
It costs £100 more than the standard models but there is an immediate saving of £85 for the annual road fund licence.
The remaining £15 price difference should be covered by fuel cost reductions thanks to improved economy and from then on its savings all the way.
Two models are on offer, the Panda Active ECO and Dynamic ECO, which cost from about £7,000.
Each is fitted with low rolling resistance tyres and low viscosity engine oil which gets the Panda ECO just below the all-important 120g/km limit for band B models.
The Panda Active ECO is powered by a 1.1-litre petrol engine which develops 54bhp, while the Panda Dynamic ECO's 1.2-litre petrol engine produces 60bhp.
Both Active ECO and Dynamic ECO models average 56mpg with top speeds of about 95mph and acceleration to 60mph in 15 seconds and 14 seconds respectively.
The Active ECO's standard equipment includes front air bags, electronic brakeforce distribution, electric power steering, follow-me-home headlights and electric front windows. The Dynamic ECO gains remote central locking and a CD/MP3 player.