Alfa Romeo Racer

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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.

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