500 reasons to smile

The Fiat 500 is back. Rejoice!

July 4, 2007 will be the 231st year since the United States gained its independence. But importantly, it will also be the Fiat Nuova 500's 50th anniversary. And on that day, Fiat will reveal the all-new

Fiat 500, its third iteration since the original 500, better known as the Topolino, was introduced more than 70 years back.

Like the Mini and the Beetle, the 500 or Cinquecento is one of Europe's iconic small cars. Beginning its life in the 1930s as the Topolino (which translates to

Little Mouse, or some say, Mickey Mouse), it was at that time the world's smallest mass-produced car. Engineered by the famous Dante Giacosa, the little Fiat was powered by a four-cylinder 569cc engine that was placed ahead of the front axle, but powered the rear wheels.

The first 500 became a legend in its lifetime for allowing more Europeans to drive their own cars. After WWII, Italy was in a phase of painful restructuring and re-building. That's when Fiat stepped in with the Nuova 500 in 1957.

The new generation Cinquecento, with its 479cc two-cylinder air-cooled engine and compact dimensions, began a new cult. From engine changes to performance versions, the 500 caught the fancy of post-Mussolini Italy like a house on fire.

It was brilliant to drive, while its average of 20 kpl plus probably left some Italian oil companies in the red. Nevertheless, it went on to become such a big hit, that 3.8 million of those tiny two-door four-seaters found homes in Europe and left behind an indelible mark in motoring history.

Since its troubles in the early part of this century, Fiat has struggled to revive its fortunes until it developed cars like the new Fiat Panda and Grande Punto. Now, with the Nuova 500, it looks like Fiat will only go on to consolidate its recovery.

Powering the new 500 are three four-cylinder engines. A 1200cc 69 bhp petrol, a 1400cc 100 bhp petrol and the 1248cc, 75 bhp multijet diesel found also on the Suzuki Swift. Softer edges with a great paint finish and a design that builds on the 500 of yore, the new car is as retro-futuristic as it can get.

The interiors too have every conceivable amenity and gizmo that one would come to expect from a modern hatchback. But the biggest prize catch is the price, which Fiat claims will be within the reach of several small car buyers. The first two 500s changed the way people drove, and it looks like the third one will drive change at Fiat.