However, in the nostalgia stakes it will not be alone; in fact there is now a noticeable trend in manufacturers successfully re-releasing popular retro cars.

While they come with all the fun of the originals they also have a higher spec, cutting edge safety features and therefore attract a different audience at a more premium price than their predecessors.

The original Volkswagen Beetle was in production for a whopping 65 years which makes it the longest continually produced motor car in the world with more than 21 million sold during that period. The new Beetle went on sale in 1998 and according to Volkswagen, surpassed their expectations with sales increasing by almost six per cent last year alone.

The Mini is the most popular British car ever, with more than 5.3 million built between 1959 and 2000. Now owned by German manufacturer BMW it can be argued that the new MINI is the most authentic of the retro cars because its basic design is largely unchanged. That has paid dividends as the new MINI passed one million sales after just six years on sale.

The Fiat 500 has been around for over fifty years and was to Italians what the original Mini was to the Brits. Almost four million Fiat 500s were made between 1957 and 1975 and over 600,000 of them are believed to still be on Italian roads.

The Italians love the original so much the government was lobbied to make the cars exempt from strict emissions laws.The new model is widely regarded as a very stylish car with the benefits of a low price tag in comparison to other retro cars.

So it’s clear that when it comes to buying cars there are a significant number of people who are not after the latest in design but prefer something that looks a bit familiar.

It is also apparent that when car manufacturers come up with a great design, it can almost become timeless, whichever decade you were born in.

Mike Waters is head of market analysis at Arval, Europe’s leading fleet and fuel management company.

In comparison to the original Panda it is light years ahead, although in reality there is little more than a decade or two to separate them.

In its latest guise the Panda is a well-built, gutsy and roomy runabout that may look a little toy-like from the outside but is every inch a proper car.

Soon it will be available in four wheel drive form and also with a diesel option.

If we all have smallness and frugality imposed upon us, apart from politicians who will keep their limousines and helicopters of course, then life with a Panda will not make humans an endangered species.

Indeed, to be purely objective rather than emotional, if personal transport is gradually eroded to the point of becoming merely a means of getting from A to B, then something as good as the Panda is all that any of us could ever argue for.

Let’s face it, with four seats, air conditioning, a stereo sound system, electric operation of most functions plus remote central locking and the ability to cruise at the motorway maximum, it is more than just adequate.

It may seem unlikely right now, but there really is a distinct possibility that at some stage in the future fancy cars will be banned.

Successive governments will simply impose increasingly tough penalties on their users, to the point where they are no longer a viable option.

How incredible then that as we reach car saturation point in the affluent UK, 80 per cent of the world’s population does not have access to motor cars.

Strange but true, according to Renault whose designers have just put the final touches to a new small car that will sell throughout Europe for five thousand euros.

It will be marketed under Renault’s bargain-basement brand name of Dacia and will be sold as the Romanian-made Logan.

It comes at a time when global vehicle production is expanding at such a rate that we have to wonder if the planet will become one gigantic slab of tarmac.

Consider that the motor car has been around for more than 100 years and that Renault has been making them for most of that time.

In 1998, just six years ago, the French car company churned out two million vehicles yet by 2010 – in a further six years – that figure will have doubled to four million.

The point is not that car production is increasing, but rather that the rate of increase is phenomenal.

It is like the rate of vehicle improvement, which has been consistent and gradual until very, very recently.

All of a sudden everything to do with cars has shifted into overdrive, apart from the infrastructure to keep up with it.

Last year we paid £42.2 billion in taxes on fuel, vehicle excise, VAT on fuel and vehicle purchases and company car tax yet the road budget was just £6.7 billion.

The ratio of the UK’s motorway network length to head of population is the lowest in Europe, way behind Spain, Portugal, Belgium, Austria, Holland, Greece and even the Principality of Luxembourg.

Ten years ago there were 3,250 kilometres of motorway in the UK and this has grown by just 226 kilometres in a decade despite the phenomenal growth in the number of cars.

To put that into context, in ten years motorway traffic has increased by 36 per cent while the main road network including trunk and major roads has grown by just half of one per cent.

It is frightening to learn that the government’s central statistics office predicts an increase of 50 per cent in UK car use by the year 2030.

The fact that we pay the highest taxes in Europe for the worst road system with the poorest maintenance is apparently accepted because we have been brainwashed into feeling ashamed of using cars at all.

Tim Green, director of the Road Users’ Alliance points out that 92 per cent of people travel by car in comparison to just a few per cent travelling by public transport in addition to those who walk or cycle.

He asks if the claims about the alleged environmental damage to the atmosphere caused by cars is deliberately exaggerated to encourage us all to hand over loadsamoney and accept sub-standard roads without a fight.

Just imagine the environmental pollution caused by a single plane and then look at the remarkable increase in the number of new destinations from regional airports across the UK.

No one complains about them, possibly because the Government does not have responsibility for providing them with highways in the sky.

The arrival of the Panda 100HP boosts the UK line up to nine models with a choice of Active, Dynamic, Dynamic Aircon, Dynamic Sky Dome, Eleganza, Alessi, 4×4 and 100HP trim and equipment level.

There is now a choice of four engines comprising the 1.3-litre 16-valve 70bhp MultiJet turbodiesel plus three petrol engines.

These are the eight-valve 54bhp 1.1-litre, the eight-valve 60bhp 1.2-litre and a new 100bhp version of Fiat‘s 1.4-litre 16-valve petrol engine, which powers the new Panda 100HP.

Both 1.1 and 1.2-litre petrol engines and the 1.3-litre turbodiesel are mated to five-speed manual gearboxes whilst the new 100bhp 1.4-litre petrol unit in the Panda 100HP is mated to a six-speed manual transmission.

The Panda 4×4 uses a variable torque distribution four-wheel drive transmission system. Dualogic, which is a clutchless, five-speed sequential manual shift with a selectable fully automatic mode, is an optional transmission on all 2WD 1.2-litre eight-valve models.

The new Panda 100HP is recognisable as the sporting ‘flagship’ of the 2007 model year line-up with a revised exterior design which features new front and rear bumpers and enlarged wheel arches which flair into new sideskirts.

A chrome exhaust tail pipe, body-coloured door handles and wing mirrors, front fog lights and a tailgate spoiler are fitted and there are 15-inch alloy wheels shod with fat rubber.

Inside there is a sporting, dark grey dashboard and black and grey upholstery and trim.

A leather steering wheel and gear knob, height adjustable driver’s seat, split/folding rear seats, automatic climate control, Bluetooth mobile phone connectivity and a new ‘Sport’ button for improved steering and throttle sensitivity are standard.

The Panda 100BHP costs £9,995 while the rest of the range is priced from £6,890 for the 1.1 Active to £9,495 for the Panda 4×4.

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Most families owned at least one and it has become part of Italian folk lore.

The Fiat 500 was the little car Italians had a love affair with – and in many cases in – until it went out of production in 1975 after nearly 3.9 million had been built.

And for several years after that thousands of Brits found themselves shoe-horning their luggage into one while on holiday in various Mediterranean destinations.

Now it’s back – and Europe seems to be taking the little car to its heart.

But while this cheeky newcomer’s retro looks has a strong physical resemblance to the original the two versions are as different as chalk and cheese.

Fiat has done with the 500 what BMW did with the MINI and VW did with the Beetle – created a superb modern car which nostalgia will help sell.

And there is little doubt the new baby Fiat has everything going for it – at a very affordable price.

I went along to drive it with the preconception that it was going to be cheap and cheerful. And while the price is cheap by today’s standards and the car is certainly cheerful there is nothing cheap about the quality of the little car which looks set to become a motoring icon in its own right.

With this baby Fiat has got it just right. It’s affordable, has the feel and build quality of a much more expensive car and will appeal to all ages for varying reasons.

The 500, which ranges in price from £7,900 to £10,700, has already been a runaway success in Europe – helped by the fact that it has been voted European Car of the Year 2008 – where it went on sale last summer.

In the UK the first cars will be delivered from next week following a huge party centred on the London Eye, and there are already 4,500 advanced orders.

Three engine choices are available in Britain: a 1.2-litre, 69bhp petrol; a 1.4-litre, 100bhp petrol and a 1.3-litre, 75bhp Multijet diesel.

The smallest engined car comes in at £7,900 while a choice of either of the other two will add £1,400 to your bill.

Whichever engine you opt for you get a choice of the same three trim levels; Pop, Lounge or Sport. Both the Lounge and Sport come at a £1,400 price premium over the entry level Pop.

But whichever model you choose for it won’t be obvious to onlookers because they are not badged, so you can have a 1.2-litre with a high trim level and pass it off as the top of the range if you want.

A little like the new MINI, the Fiat 500 comes with an endless choice of optional extras – including various types of stripes – so you can personalise it until you have a unique creation if you are so minded.

The Fiat 500 is one of the most Tardis-like cars on the market. In other words it’s much larger on the inside than it looks from the outside. There is ample space in the front for the tallest of drivers and when I sat in the driver’s seat a colleague who was over 6ft tall sat comfortably behind me.

Fiat says the little car has more room in the rear than the MINI and more luggage space.

When I first sat in the car I instantly liked the view from behind the chunky steering wheel, with all the instruments set within one major dial in a binnacle in the driver’s line of sight.

The outer ring of the dial is the speedometer, the middle ring the rev counter and the inner ring houses the fuel gauge, water temperature gauge, trip meter, digital clock and outside temperature gauge.

The trendy dashboard comes in the same colour as the car’s exterior – giving it a modern sporty persona.

The gear-lever is mounted high on a console set on the dashboard rather than on the floor making gear changes easy, slick and positive.

On the road the 500 is quiet, refined and has a surprisingly up-market feel to it. You feel as if you are driving a larger, much more expensive car but with the bonus of small car manoeuvrability and frugal fuel consumption.

Anyone opting for the 1.2-litre will average 55.4mpg, the 1.4 averages 44.8 and the diesel 67.3. Their top speeds are 99mph, 113mph and 103mph respectively.

There is no doubt the diesel is a more gutsy car with an impressive amount of torque that sees it going up hills in fourth gear that would necessitate a change down of one or even two gears in the 1.2-litre, but pound for pound the smaller engine offers great value for money and does a good job on everything from country roads to motorways. Currently 50 per cent of sales are expected to be 1.2-litre cars with the remaining 50 per cent split evenly between the 1.4-litre and the diesel.

The 500 has been awarded the maximum five-star safety rating in the Euro NCAP tests and every model comes with seven airbags as standard.

Other standard features, even on the base model Pop, include ABS brakes, electric front windows and door mirrors, remote locking , an MP3 compatible CD player and Fiat’s dual control steering system which allows you at the touch of a button to make the steering much lighter for parking. So it’s a small car that thinks big.

In the coming months a whole new generation of motorists in the UK are about to try the Fiat 500 – and I guarantee every one of them will find it exceeds their expectations.

Not the Fiat Punto that is already one of the best loved small hatchbacks on our roads, but the all-new Grande Punto that has just cost Fiat more than £500 million to develop.

The stylish new hatch took to the streets for the first time in Fiat’s home town of Turin this week at a spectacular launch where Fiat chairman Luca Cordero di Montezemolo left no doubt of the importance the Grande Punto plays in the company’s £7 billion recovery plan.

Montezemolo also quipped that getting the new Punto off the ground had been number one priority – more than motor racing glory for Ferrari, which, after all, is also part of the Fiat stable.

That aside, Fiat’s new strategy appears to be working and the Italian giant’s global operations returned to profit last year.

The new Punto is intrinsic to Fiat’s future and it is being groomed to sell even more than the six million achieved by the current model which made its debut in 1993.

However, the existing Punto is to remain in production until the end of next year with the Grande version running alongside when it arrives in the UK next February.

It is called Grande because it is significantly bigger than the original – some eight inches longer – and its styling by Italian design house Giugiaro is exceptional.

There is even a hint of another great Fiat-owned Italian marque, Maserati, about the new Punto’s fresh face.

Either as a three or five door it looks very classy with a flowing, wedge shape giving it an air of power. That is emphasised by angular door mirrors which themselves could grace an F1 car.

The larger dimensions have benefited the interior, too, with good head and leg room all round – even in the three door models.

Better quality fixtures and fittings and a comprehensive instrument panel complete the effect while all the cars used at the launch in Turin featured snazzy two-tone upholstery and trim.

The overall effect is a luxury interior in a family-sized hatch.

The latest Punto line-up is weighted heavily towards diesel engines with four featuring in the initial range alongside only two petrol engines.

Fiat’s world-beating 1.3 litre diesel has been uprated in the new Punto with power increased from 70bhp to either 75 or 90 bhp. The more established 1.9 litre JTD engines, which will go into more powerful models, have also been uprated to 120 and 130bhp.

On the petrol side there will be a 65bhp 1.2 litre engine and a 1.4 developing 77bhp. Later on next year the range will be extended to include a high performance 150bhp diesel and a 180bhp turbo petrol Punto.

On the road, the new car is much more solid and even more driver-friendly than the existing car. The ride is also improved and for a car of this class it is very quiet and refined.

Six speed gearboxes are fitted to the diesels while the petrol models make use of five speed boxes but the shift is smooth and the gearing well mated to the engine output.

If anything the 1.3 litre versions are a bit slow on the take-up but once the revs build they are gutsy performers with plenty of mid-range power.

The 90bhp diesel has a 0 to 60 acceleration time of 11.9 seconds with a claimed top speed of 110mph and will average in excess of 60mpg, while the more potent 1.9 litre diesel can complete the 0 to 60 sprint in a brisk 9.5 seconds, has a top speed of 123mph and still manages more than 50mpg.

All the diesels fitted in the new Punto exceed current emission regulations and have CO2 exhaust gas ratings of less than 150g/km.

In comparison the 1.4 litre petrol engine has a top speed of just over 100mph, an acceleration time of 13.2 seconds but it too has good economy of 46mpg and low emissions of 145g/km.

Four trim levels, Active, Dynamic, Emotion and Sport, will be available and all will come with advanced safety features such as the latest braking systems, pretensioned seatbelts and up to seven airbags – all of which has helped the Grande Punto achieve class-leading results in the NCAP crash tests for passenger, child and pedestrian safety.

Prices are still to be announced but Fiat is likely to keep them similar to the current ragne which runs from £7,595 to £12,295.

In more ways than one the new Punto will be seen as a comeback car for Fiat but with class leading dimensions, wonderful diesel engines and extraordinary good looks it has desirability stamped all over it.

NOBODY does small cars better than Fiat – which is why the Panda steps up to scoop the crown this year. And Auto Express has been a fan of the city car ever since it took top prize at our New Car Honours in 2004.

Back then, the judges loved its looks, road manners and practicality – and these are still strong attractions. The Panda is also cracking value, and isn’t plagued by the reliability issues which have afflicted some older stablemates.

The revamp of the dealer network is more than a quick makeover, because the brand is rebuilding its reputation – and the Panda is a vital piece of the jigsaw.

Its showing in the annual Auto Express Driver Power satisfaction survey, where it finished in a very respectable 41st place overall, is proof that the Italian marque is winning its battle to improve quality.

With healthy new sales, there’s plenty of choice and a wide array of engine variants, with a frugal Multijet diesel, 4×4 off-roader and, more recently, a hot hatch model catering for all tastes.

The flow of fresh additions to the line-up ensures the Panda continues to be a fashionable city car, while its five-door layout, spacious cabin and surprising long-distance ability make it a versatile and desirable selection.

The Fiat was the unanimous choice among the Auto Express panel of experts and Graham Smith from British Car Auctions summed up its appeal: ‘The Panda has stood the test of time, it’s serious value for money and there are loads about.’

Dynamic trim offers the best value, but make sure you get air-con, because it’s not standard. The torquey 1.3-litre Multijet commands a premium of around £350 over a 1.2-litre petrol model, and prices for the chunky 4×4 start at about £5,500 – that’ll get you a 2005 54-reg car.

The Fiat 500 arrives in the summer, too, and you can expect the Panda to bask in the glory of its tiny twin. So if you’re looking for an affordable runaround, you need to go Italian.

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KIA PICANTOPrice: £3,500-£7,000 Years: 2004 to present

THE little Kia may have lost its crown this year, but it’s still a fantastic used offering. The only real drawback is limited availability, as you don’t see too many of the small city cars in the classified ads, but if you can find a good second-hand example you’ll have a spacious, well equipped and reliable runabout for a very reasonable price.

The firm’s recent initiative to offer a part-exchange allowance on Picantos should have swelled the numbers on used forecourts. Also, the brand has a revised approved used car scheme in the pipeline, which should provide extra reassurance on dealer-supplied models.

TOYOTA AYGOPrice: £5,250-£9,000 Years: 2005 to present

HERE’s a new face for the Used Car Honours! Making its debut this year, the Toyota was chosen by the judges over its Citroen C1 and Peugeot 107 rivals. Why? Well, the Aygo will be more expensive than the Gallic duo, but it’ll be worth more when you sell it – and as the oldest motors are only 18 months old, that’s a serious consideration.

The downsides are comparatively few, but include its rarity – which pushes up its already high price – and the limited model line-up. These considerations aside, the Aygo proves to be a fun, practical and stylish city car which shouldn’t let you down.

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Fiat’s Doblo, which has attracted more than 150,000 buyers since its arrival four years ago, gets revised styling, improved refinement, more equipment and better engines.

The current 1.2-litre petrol engine is replaced by a new 1.4-litre unit that raises power from 65bhp to 77bhp. Meanwhile, the 105bhp 1.9-litre turbodiesel is boosted with a new variable geometry Garrett turbocharger which raises power to 120bhp.

Styling-wise, the revised front end now has prominent dual-barrel headlamp clusters, a new grille and a large front air dam with fog lamps.

At the rear there are now high-visibility, two-tone vertical tail lamp clusters and a new bumper that houses built-in reflectors and optional parking sensors.

Inside there are enlarged door trim panels, a revised dashboard and a new shelf over the windscreen. There are four new cloth upholstery options and a dozen exterior colours including nine metallics.

Active versions have electric front windows, remote central locking, front airbags, a height adjustable driver’s seat and armrest, split folding rear seats with a central three-point seatbelt, a stereo radio with ye olde cassette player and 15-inch alloy wheels. Family versions have seven seats with three-point seatbelts, front fog lights and colour-coded bumpers. Dynamic models gain air conditioning and a CD player.

Options include front side airbags, heated electric door mirrors, roof bars, reversing sensors, air conditioning, a radio/CD player and satellite navigation with a seven-inch colour screen plus voice-activated commands for the telephone.

At 4,250mm long, 1,720mm wide and 1,818mm in height the new Doblo is 90mm longer, 10mm wider and 10mm higher than its predecessor. Prices range from £9,600 to £12,000.

Powered by Fiat‘s dependable and economical 75bhp, 1.3-litre, 16v MultiJet engine it has a one cubic metre load capacity and comes equipped with car-style comfort and convenience features including a height adjustable driver’s seat, remote central locking, electrically operated wing mirrors, ABS anti-lock braking with EBD (Electric Brake Distribution), adjustable headlamps, height and reach adjustable steering wheel, Dualdrive power steering, locking fuel cap and a radio/CD player.

Climate control air con with pollen filter is available as an option as are 15-inch alloy wheels, headlamp washers, reverse parking sensor, front foglights and rear wash/wipe.

It collected the same number of first places from the judges as the Volkswagen Golf, but the Italian supermini snapped up a higher number of second choice votes so clinched the title.

The Golf then tied for points with the Mazda3.

Fiat has won the covetted title eight times since the event started in 1964, latterly with the Bravo/ Brava in 1996.

Nearly 60 motoring journalists from 22 countries voted this year.

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The newcomer will be seen for the first time at this month’s Geneva motor show before zooming into UK showrooms later this year.

It will be the latest model to swell the ranks of the rapidly-expanding pocket-rocket sector of the market that is back with a vengeance, lining up alongside the likes of the Peugeot 207 GTi, Vauxhall Corsa VXR and Renault Clio F1 Team.

In the case of the Grande Punto Abarth power comes courtesy of a turbocharged 1.4-litre engine developing 155bhp.

There will be a more powerful version generating 180bhp and possibly further power options of 200bhp and ultimately 240bhp from a 2.4-litre unit in due course.

The return of the Scorpion badges is an important step for Fiat and the sting in the tail may be a four wheel drive option for the most powerful versions.

Already known as the Fiat Puntograle after the rally-conquering Delta Integrale, the return of the Abarth badge may be a forerunner to another momentous milestone for Fiat.

The company would love to re-introduce its Lancia brand back into the UK, which died with the Dedra, and success with the Abarth marque would help this to happen.

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