According to our list of the cheapest cars in the world, Fiat already offers the ninth least expensive car available: the Palio. It seems as if that might be the cheapest vehicle which Fiat would be interested in placing its name on, as reports are coming in which indicate that the company is considering a new brand for the further development of low-cost cars. Already, Fiat's competitor Renault has announced that it intends to continue operating in the cheap-car segment that it competes in already with the Logan. Bajaj is said to be working with Renault on its upcoming $2,500 Nano challenger.

So far, there has been no indication on whether the new brand will be a resurrection of a previous marque owned by Fiat or something completely different. Though the new low-cost vehicle would seem to be in direct competition with the Tata Nano, Fiat chief executive Sergio Marchionne indicates that the two brands, which already cooperate in other ways, might be working together on the project.

[Sources: Automotive News Europe - sub. req'd, Reuters]

Fiat Palio. 5-door hatchback. "World-car." $9,242

Born in Brazil and built in other Latin American countries, as well as Poland, Morocco, Turkey, India, South Africa China and Russia (the sedan version), the Fiat Palio is truly a "world car." This car is one of the first models designed for emerging economies in mind. It was unveiled in 1996 using a lot of components from older Fiat models, especially the Fiat Uno. The current version still carries the first chassis but the car is likely to be phased out, at least in its Brazilian homeland, by an adapted version of the Fiat Grande Punto.

The car has included all kinds of engines, from 1.0-liter misers to sportier 1.8-liter versions and all of Fiat's small diesel engines. While the Palio doesn't use the latest technology to limit emissions, they have always been competent, high-mileage units. In Brazil, most of them are flex-fuel capable.


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