The three-door Alfa Romeo hatchback will share its underpinnings with Fiat Grande Punto. Engineers are currently testing a prototype Alfa fitted with a 197 bhp petrol engine and limited-slip differential, which could form the basis of a hot Alfa GTA variant. The newcomer, known internally as the Racer, looks set to revive the brand's Junior tag from the '60s and '70s. However, Alfa bosses remain undecided on whether to replace the existing numeric naming system across the rest of the line-up.
Power for the all-new Alfa is expected to come from a turbocharged 1.4-litre engine. There will be a choice of three outputs: 118 bhp, 148 bhp or 197 bhp. In addition, the firm is developing a fresh 1.6-litre Multijet diesel, with power
options ranging from 100 bhp to 150 bhp.
Entry-level versions are expected to start from around £13,000 when the model hits UK showrooms. And Alfa will monitor sales to see if it's worth introducing spin-off variants such as a sporty coupe, a cabrio or an estate-style version.
The small hatchback is the start of a major product offensive for the Italian manufacturer, which
recently axed 60% of its UK franchised dealer network in a bid to boost flagging service standards.
Replacements for the Alfa 147 and Alfa 166 are both set to debut in 2009, while a soft-roader has been given the go-ahead, too. This all-new car will be based on the Alfa 147's successor, and is tipped to appear in 2010.