Fiat has revived the historic Abarth badge for a sporting version of its 500 and Punto minicars and the Italian automaker says it wants to create an entire unique Abarth brand starting with a sports car. As we’ve previously reported, Fiat has been working on a low-slung sports car, but news comes today that the Abarth coupe will be based on the Fiat 500, itself closely rated to the rather humble Fiat Panda.

But don’t let its platform fool you: AutoExpress reports that the Abarth coupe will feature a lightweight aluminum chassis and a 1.4-liter turbo four from the 500 Abarth (good for 135-horsepower). Though it will be front-wheel-drive, the Abarth Coupe will employ Fiat’s Torque Transfer Control, which acts like a limited slip differential up front.

Later on, expect a 158-horse high performance variant that should still average 45 mpg on the European combined cycle.

AutoExpress speculates that the little Abarth coupe, which will resemble both the Lotus Elise and the ill-fated Smart Roadster, will start at £12,000. Don’t expect North American sales unless Fiat decides to bring the 500 to the United States in Canada. But the Italian automaker recently put the 500 on sale in Mexico – its first North American market – so it’s possible that an Italian invasion could come sooner rather than later.

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