Fiat has launched the new-generation Punto supermini (pictured) that it hopes will return its auto division to profit.

The car, a key part of an €18bn (£9.8bn) investment programme for 20 new and revised models also including the new executive-size Croma, is larger than its predecessor, which will remain in production alongside the new version for the time-being.

The Punto has long accounted for some 25% of Fiat Auto’s total sales, and has sold six million units since the first version went on sale in 1993. It became the EU’s best-selling model in 1997.

Also this week Renault unveiled details of its equally crucial new Clio, the third incarnation of the supermini which is also larger than its predecessor and endowed with new technology and a five-star NCAP rating.