In Fiat's words, "The name Marrakech conjures up a picture of desert dunes and also evokes an idea of holidays in the widest sense of the word: as an expression of pleasurable, carefree days where the fun is as much about getting there as arriving. Its compact shape makes you want to reach out and hug it. At just 3.57 metres long, 1.61 metres wide and 1.48 metres high with a wheelbase of 2.30 metres, it would not be difficult to imagine it threading its way through tiny streets. Its dune-buggy looks would be just as at home cavorting in the open air or on the beach of a smart resort on the Côte d'Azure. 

"This is no mere coincidence because the Fiat prototype has borrowed certain traits from the famous dune buggy of the Sixties. from its open body to its low, windowless doors (easier to climb over than through), tubework to protect passengers and four drive wheels. The prototype comes with four wheel drive (4x4 system with viscous coupling) and 16" wheels with 205/50 tyres."

The Italian marque claim the new carbon fibre central chassis structure reaches the highest structural rigidity level available in the segment, 18.000 Nm/mm in torsional rigidity, 9.000 Nm/mm in flexional rigidity, for a dry weight of 1280 Kg, while the roll bar, elliptical in section, is built out of carbon and chrome-molybdene alloy.

The 7.3-litre Mercedes Benz AMG engine borrowed from the C12 S offers its 555HP and 750Nm power through the ABS/Traction Control safety systems already used in the Zonda S. The forged aluminium wheels are shod with 255/35/19 and 345/35/19 front and rear tyres respecitively and have been specially developed for the Zonda by Michelin.

Engines will be headed by the all-new 70bhp 1.3-litre Multijet 15v common-rail diesel engine. Petrol units are expected to include an entry-level 80bhp 1.2-litre 16v FIRE unit, which will be joined by new 100bhp 1.4 and 118bhp 1.6-litre engines. Eventually a high performance version will be equipped with either a 1.8 or 2.0-litre 16v.

Topping the range will be the 1.3 Multijet 16v engined version, Fiat expectant that its next generation compact common-rail technology diesel will entice new users with its versatility and impressive consumption.

While Fiat management are quietly confident that the new 'mini' will be a sales success, last week a number of respected motoring journalists were given secret test drives of pre-production versions and generally feedback was very positive. 

Pre-production at the Polish Tichy factory commenced last month, with final production versions to roll from May. By the end of the year 70,000 are expected to have been built. 200,000 units will come out of the factory in 2004 ( 80% will be exported ) while 2005 will see production hit capacity of 250,000 units per year.

Colannino, who is openly not hopeful that his bid will be successfull, expects Fiat to lose a further €3.5bn during 2003-04 as cash is pumped into developing new models and upgrading the dealer network.

Meanwhile talks to recapitalise Fiat are going on apace. Fiat wants GM to invest around €2bn to take its stake to 40%, while deferring the "put" option to 2007/8, but without parting with any assets. GM is open to the idea of raising its stake in Fiat Auto from the current 20% to around 30-40% in exchange for dropping the "put" option, but will only invest in exchange for obtaining assets including the Alfa Romeo brand and the profitable South American operations.

GM's proposals are being firmly resisted by the Fiat board, so a compromise mooted would see a further 20% stake being sold for €1.5bn, with the South American operations being pooled into a joint GM/Fiat venture.

Yesterday Umberto Agnelli, the new head of the Agnelli clan, was invited to take part in a meeting with Fiat's creditor banks and the Group's top management. It is widely expected that Umberto will replace Paolo Fresco as Group Chairman this summer. The banks are believed to be alarmed at reports that the "put" option with GM, which they regard as a vital "safety net" is to be sacrificed, the meeting was demanded by them to clarify the progress of talks..

Although final suspension set-up is still being worked on, all the journalists were reportedly impressed with the characteristics of the new car, including the the new 1.3 Multijet 16v diesel engine, the Multipla-style raised gearshift and the parking-assisting power steering. The cabin ergonomics came in for high marks, with the design of the dashboard and roominess impressing the testers.

Meanwhile, senior management within Fiat have expressed their confidence that the "Small" will be a success and build on the company's long standing tradition of excellence with 'city' cars.