The Brazilian division of the Italian car major Fiat, Fiat Automóveis has unveiled the Palio in Brazil. The new Fiat Palio has been completely re-worked by Centro Stile Fiat in Italy. In terms of looks, it is more sporty, modern and exquisite. The wheelbase has been increased, the overall length is increased, its wider and higher too. This means more space inside and better comfort. The Palio is powered by 3 engine options: the Fire 1.0 EVO, the Fire 1.4 EVO and 1.6 16V EtorQ. All the engines are flex-fuel compatible. The 1.6 litre engine comes with mechanical or Duralogic Transmission. In total, 6 different variants are being offered to the customers: the Attractive 1.0, Attractive 1.4, Essence 1.6 16V, Essence1.6 16V Dualogic, Sporting 1.6 16V and Sporting 1.6 16VDualogic.

The Fire 1.0 EVO produces a power of 73 BHP and a torque of 95 Nm @ 3850 RPM. When run on ethanol, it produces 75 BHP of power and 99 Nm of torque. The Fire 1.4 EVO produces 88BHP of power and 124 Nm of torque. The Palio is loaded with loads of features like the lateral and frontal airbags, ABS brakes, leather steering wheel with radio controls, gear-shift butterfly-type switch on the wheel, twilight and rain sensors, cruise control, windshield heater, CD player with MP3 and iPod/USB inputs, fog lamps, rear hatch Logo push, switchblade key with remote control, among many other items. The new Fiat Palio features the braking correction valve that acts on the rear brake. If the car is equipped with ABS, the braking correction is electronic, by EBD (Electronic Brake force Distribution), which acts on the rear brakes. This function is integrated into the ABS.