With sales of small MPVs set to explode across Europe, Fiat will be launching its Punto-based model early next year.

The Fiat Idea will go head to head with rivals such as the Toyota Yaris Verso, Vauxhall Meriva and Ford Fusion in a market projected to grow from 280,000 vehicles a year in Europe to 530,000 by 2005.

Such was the need to get the Idea to market quickly that it was developed on the old Punto platform rather than the new model launched earlier this year. Fiat also ruled out sharing the Meriva platform with alliance partner General Motors.

Fiat insiders said, however, that the next generation Idea and Meriva were likely to have much more in common.

The Italian press launch rolled out four engine types, 1.2- and 1.4-litre petrol plus 1.3 and 1.9-litre Multijet diesels. The UK will only be taking the larger petrol and smaller diesel units. The reason the 1.9 diesel will not be available is down to an engineering difficulty in switching from left to right-hand-drive. Five-speed manual and five-speed clutchless, Dualogic transmissions will be available with both engines.

Trim levels for the UK will be Active, Dynamic and Eleganza and standard on all models will be anti-lock brakes, remote central locking plus driver and passenger airbags.

The Italian carmaker will also be launching its Fiat Link programme with the Idea designed to improve the speed of communication between the factory and the dealer network across Europe.

Dealers will be able to 'build' the car for customers on a computer, including a finance package while an on-line stock locator will be able to see if the car to the specification ordered is already being held at another dealer.

Fiat Link is currently being piloted in Spain and Belgium and the plan to roll it out across all European dealers.

Interchange News Agency - 20 Oct 2003