Fiat to replace Palio with newer generation vehicle

All good things have to end and Its time to finally say goodbye to the Palio.Having served fiat well in most developing markets and also at the same time being a favorite amongst car enthusiasts it would now be replaced by a new car developed by Fiat for India and similar markets.

Although it was a true class leader for a while,the palio had begun to show its age and a replacement was needed urgently,which fiat have responded to finally.What is not clear is whether the Palio legacy[name tag] would continue with the new car or fiat would go back to the UNO tag.The new car should be available in a year or two.What is also known is that it would be based on the existing fiat panda platform but would be a little bigger in size compared to the panda.

Fiat would do well to keep the same palio heritage with the new car even though they are developing a cheap car and continue with that excellent ride quality and tank like build.However fiat should not forget that aspiration levels even in developing markets has increased significantly and not end up with a car that looks like its from our grandfathers time from the inside.

Update:
Fiat now say they are developing not one but two small low cost cars.The first car would be positioned above the panda while the second would be positioned below the panda.