Fiat Topolino will be built in Serbia

Fiat has signed an official agreement with the Zastava plant in Kragujevac, Serbia at the beginning of this year. The Italian maker intends to built the future Topolino in here after they will increase plant’s production.

The Topolino will be less than three metres long, and will be powered by a new two-cylinder petrol engine that will come in both normally aspirated and turbocharged form, producing around 65bhp and 90bhp respectively.

The new motor uses a cost-saving iron engine block in place of aluminium, but features Fiat’s innovative ‘MultiAir’ variable valve system, which should make it impressively clean: the company is believed to be targeting CO2 emissions of less than 90g/km.

When the Topolino goes on sale in 2010 it will be the first two-cylinder car to be sold across western European markets since the demise of the Citroen 2CV. Prices will start from around €6500.