It will be sold through a small group of selected Fiat dealers from summer 2008.

The 150bhp 1.4 petrol turbo Grande Punto Abarth will be the first product.

As its name suggests, the new model shares the same basic shell as the Fiat Grande Punto but it will dispense with Fiat badging to distinguish its status as a separate marque.

A hotter and lower 180bhp Super Sport or ‘SS' version may also be available and was recently shown at the Frankfurt motorshow.

The more powerful model features a roll-cage, enhanced braking and almost every conceivable custom option from new alloys to smart go-faster red stripes.

It is expected to come to the UK as is a 500 Abarth, which is based on the Fiat 500.