Considering the competition for best supermini got so much tougher in the past 18 months - a new Peugeot 206, Renault Clio and Toyota Yaris - it's amazing that the Ford Fiesta has kept its crown. But considering the Fiesta's weaknesses, the stage is set for the new Fiat Punto to pull off an upset. And Fiat hasn't wasted its opportunity, as the new Punto is effectively an all-new car. From the outside it looks more rakish and sporty, but beneath the new styling is the unmistakable silhouette of Fiat's roomy supermini.

Just about the same size as today's car, Fiat has been careful to keep the spaciousness of the roomy cabin unchanged. The five-door though, has a slightly bigger boot thanks to a different tailgate. Stung by persistent criticism that its on-road manners lagged behind rivals, Fiat has engineered a new rear suspension for the Punto. All the indications are of a much-improved drive and more comfortable ride. The steering is more positive and the outgoing model's excessive roll and lack of grip are replaced by more confident cornering.

The Punto's build quality has been under pressure from newer designs and the early cars we've sampled not only have higher-quality trim, but also feel much better screwed together than before. Entry-level is an 8-valve 1.2-litre with 58bhp followed by an 86bhp 16-valve 1.2. Top of the range will be a 130bhp 1.8-litre, badged as a GT. While a new common-rail diesel will replace the 1.7-litre turbo-diesel. Smoothest of the bunch looks to be the 8-valve 1.2, but the performance of the 16-valve version is more seductive.
Five-speed manual gearboxes will be standard, but there's also a continuously variable transmission (CVT). Mated to the 1.2-litre 16-valve, it will be offered in two versions - one for comfort and one for sporty driving. A new, electrically assisted power-steering system is part of the Punto package, although Fiat's UK importer has yet to decide whether to fit it as standard to every model

A unique feature of the steering is a button to select two different levels of assistance. The lower setting will tune it for ease of parking, while the higher setting will make it feel sportier. Improved in the areas that needed attention, the new Punto looks like a potentially tough competitor for the all-conquering Fiesta.v