The new Fiat 500 was launched in July 2007 in Italy to great fanfare and much praise. In almost every review or article on the new Fiat published there was an obvious comparison being drawn, the 500 was viewed as the first serious competition to the MINI in the niche market of premium small cars, with unique and retro styling.

The similarities are there for all to see, both small cars, both reinterpretations of a 1950s icon that change the motoring landscape, particularly in their home markets. Frank Stephenson, designer of the original new MINI oversaw the creation of the new Fiat 500. Both cars are being promoted as thoroughly modern and fashionable. Cars you can truly make your own through an array of factory and dealer fit options. The Fiat 500 sparked a lot of interest on MINI2 and in the MINI community in general. So we thought we’d share our driving impressions of the new baby Fiat.

Recently we arranged an extended test and photo session with an Italian spec Fiat 500 1.4 litre (100 hp) Sport model. Thanks to Motorvogue in Northampton, we took the Fiat out for a spin on some great roads in Northamptonshire, and it gave us a chance to get a real flavour of what the new Fiat 500 is all about. To be perfectly frank, we found the new Bambino a bit of a mixed bag.

The motoring press at large seem to have gone all ga-ga over the new Fiat. Maybe it’s the delightful design of the car that’s caught their imagination, maybe it’s the lavish launch party Fiat arranged in Turin, or maybe it’s the excitement of the MINI having a real challenger to its crown that’s made them all excitable. Mike Rutherford has already said he wouldn’t argue with the new 500 being “Car of the Year”. But while we found many things to like and smile about with the new 500, it wasn’t all rosy in the garden.

One place where Fiat have been very clever, and possibly “got one over” on MINI is their interior design. The new 500 certainly doesn’t have the same air of quality, and hard grey plastic is present in abundance. However, the fit and finish is very good, not a rattle to be heard over the rough British back roads, and almost every where you look and touch things have been done well. The rather uninspiring colours chosen on our test vehicle don’t really do the car justice (inside or out), but the dash, the quirky but very effective speedo console (which contains rev counter, speedo and computer information all in one neat package in front of the driver) and all the main dials have a certain style and appeal to them which provides a halo effect and makes the entire car feel friendly and comfortable from the front seats.

Storage is also good. There is no glove box, although there wasn’t on early MINI models either, but there are cubby holes aplenty, in every nook and cranny there’s a place to store your bits and bobs, and the boot, aided by a lack of complex rear suspension taking up valuable room, puts the MINIs to shame. Although the raked rear end means that by the time you reach the incredibly tiny and rather flimsy parcel shelf there is no depth left to speak of.

The seats are small and thin on the sports model compared to those found in any MINI, but they do offer good levels of support. The driving position though is as different to that in the MINI as night is to day. You sit quite high, and seat adjustment is limited, when you lower the seat base the level at the knees didn’t seem to shift, meaning your bottom sinks but your legs remain a little high. We also didn’t find much room in the footwell for a pair of size eleven feet. They’re by no means uncomfortable, but you have very little of the sporty, low down feel of the MINI seats, even with the sports trim you sit on, rather than in the seats of the new 500.

On the road, the 1.4 litre engine and the chassis of the Fiat 500 performed well. This version, with 100hp is top of the range until the Abarth models are unveiled at the Tokyo motorshow later in 2007, but the fairest comparison is probably the MINI One, rather than the Cooper S, or even the MINI Cooper. Dynamically the little 500 copes well enough with twists and turns, the suspension is quite firm and there’s not too much body roll. But we couldn’t shift the feeling this baby would be eaten alive by a MINI on a slalom course.

The 1.4 litre engine is quite peaky, with a fairly narrow power band. Fiat claim a 0-62 in just over ten and a half seconds, and it certainly isn’t going to be burning up any tarmac, but for spurting around town it’s great, and the six speed gear shift is well positioned and shifts are smooth and slick. The car is very manouverable and looks better in the metal than any photos we’ve seen suggest. Its diminutive size and clever styling give it the look of a roller skate as it darts around bends. The power on offer is closely matched to that of the second generation MINI One, also equipped with a 1.4 16v power plant.

So how seriously should MINI take the competition of the new Fiat 500?

We’ve no confirmed UK pricing, but in Europe it’s smartly priced and in France and Italy in particular it’s selling like hot cakes. Considering the 500 we drove was a top of the line 1.4 16v Sport edition, we can’t see it making too much of a dent on MINI Cooper and MINI Cooper S sales from people wanting a small, sporty car that’s as good around town as it is on the bends, but as a city car, and competition for the MINI One we think it could be a serious MINI challenger, and if the Abarth can address some of the performance and dynamic issues then the Cooper, even the Cooper S, could be in for a fight from this feisty little Italian upstart.

The media love the Fiat 500, and it will almost certainly be the next “car to be seen in”, in fact in a recent review Auto Express say it’s worth buying almost on that basis alone, despite being critical of the drive vis-à-vis the new MINI.

The new Fiat 500 is on sale now in Italy and France, and will hit UK showrooms from February 2008. US launch is nothing more than a distant possibility at this stage. For more information on the new Fiat 500, check out our baby sister publication, NF500