Fiat 500: Chic and cheerful - What's it like to drive?

Many of the 500's underlying mechanicals are taken from the Panda.

There'll be an evolution of Fiat's 1.2-litre engine, which produces 69bhp and is tuned to return 55.3mpg, while a 100bhp 1.4 petrol will add some zip.

The frugal 75bhp 1.3-litre diesel arrives in the spring, its meagre 111g/km of CO2 putting it in the lowest tax band.

The line-up will eventually be supplemented by a zingy 900cc twin-cylinder turbocharged petrol, and the first sporty Abarth versions will be powered by a fiery 135bhp turbocharged version of Fiat's 1.4-litre 16-valve unit.

There's also the promise of a 150bhp Abarth – no official figures, but reckon on 0-60mph in below 8.0sec and a top speed of more than 125mph.

Our initial test drive took place at a Fiat test track in Italy and was restricted to the 1.4 Sport and 1.3 diesel.

Styling aside, the first thing that strikes you is how high you sit, even with the seat in its lowest position.

Despite this and the limited adjustment for the steering wheel, it's easy to get comfortable because there's plenty of room.

Best of all, you get a great view of the road ahead. That short bonnet makes it so simple to manoeuvre the car in tight confines, although the small rear screen and chunky pillars impede rearward vision.

Even so, no one will struggle to park the 500, because the wheelbase is so short and the steering can be lightened to featherweight resistance by selecting City mode.

Unfortunately, even in weightier higher-speed mode, the steering remains vague, while the clutch and brakes feel mushy.

At least the gearlever, mounted high on the dash, has a sweet, precise shift, especially on the six-speed gearbox fitted to the 1.4.

While the diesel's five-speeder is fine, it's just that bit sloppier – which sums up the difference between how these two models drive.

Given that this was a track-based test, it was inevitable that the Sport, which comes with stiffer suspension and weightier steering, would feel the more secure model.

With the added advantage of less weight to carry, it displayed excellent grip and changed direction with minimal body roll.

The softer-sprung diesel rolled more in corners and was slower to carry out high-speed lane changes, but it still hung on willingly in bends and felt secure at motorway speeds.

The diesel's softer suspension, which will also feature on the less sporty petrol cars, will be the more comfortable option for day-to-day motoring.

The smooth nature of the track makes it difficult to say with any certainty just how the 500 will cope with UK roads, but the few bumps we encountered were dealt with quietly.

The 500 is pretty refined for such a small car. Both engines are smooth, creating vibrations in the cabin only at very high revs, while wind and road noise are far from intrusive.