Bambino brings more drama

Italy's smallest car, the Fiat 500, has been updated for 2014, bringing a class-leading new seven-inch TFT colour instrument display and more personalisation options for the pint-size hatch and cabrio range.

However, the Series 3 upgrade is accompanied by a $1000 price hike at base level, price increases of up to $2100 on other models and the deletion of Dualogic automatic convertibles, making the cabrio up to $2200 pricier.

Now priced from $16,000 plus on-road costs or $17,000 drive-away, the two-door 500 continues to be offered with three distinctly different equipment grades, each powered by a different engine.

But the cheapest 500 misses out on the fancy new Magneti Marelli-developed digital instrument cluster that is the headline act of the upgraded Series 3 range, which was revealed at the New York motor show in April and is likely to be the last update for the red-blooded 3.5-metre micro-car until its replacement appears in 2016.

The circular seven-inch TFT colour instrument screen, which displays a cute graphic of the 500, presents a large central digital speedo, bar-type tacho, temperature and fuel gauges, gearshift indicator, trip computer functions, warning lights and media, phone and navigation info readouts.

Apart from sharpening throttle and steering response, when Sport mode is selected in mid-range S variants, the TFT screen reconfigures itself with racier gauges including a digital RPM gauge and g-force meter.

Meantime, flagship Lounge models can display an 'eco' gauge, which measures how efficiently the car is being driven in real time, and awards 'Eco Hero' trophies designed to encourage efficient driving.

However, because the clever digital instrument panel is only standard in S and Lounge models, changes to the entry-level Pop are limited to a range of new interior and exterior colour choices.

Three new paint colours – Blue Jelly Bean, Mint Milkshake and Vanilla Ice Cream – join the 11 existing colour options across the range, plus 16 new interior options and three cabriolet roof options, spelling a broader range of customisation options.

Other unique options include a multitude of bright roof and bodyside stickers, key fob covers and – except for Pop buyers – a sunroof, TomTom portable navigation, 16-inch alloy wheel designs and a Perfezionare Pack also comprising leather trim and xenon headlights.

All three petrol engines remain unchanged, meaning the base Pop continues to be powered by a 51kW/102Nm 1.2-litre 'FIRE' four-cylinder that's matched to a either five-speed manual (hatch only) or six-speed Dualogic automated manual transmission and consumes 5.1 and 5.0L/100km respectively.

The mid-range 500 S (formerly called the Sport) offers the most powerful engine in the range – Fiat's trusty 74kW/131Nm 1.4-litre four, paired with six-speed manual (hatch only) and Dualogic gearboxes. Fuel consumption is 6.1 and 5.8L/100km respectively.

The range-topping Lounge scores Fiat's newest engine, the twin-cylinder 900cc TwinAir Turbo, which delivers less power (63kW) but more torque (145Nm at just 2000rpm).

Coupled exclusively to the Dualogic auto and fitted with idle-stop and intake valve control systems, it consumes just 3.9L/100km – the same as Toyota's Prius hybrid, making it Australia's most efficient petrol engine.

Carryover safety features across the Fiat 500 Series 3 range include seven airbags, anti-lock brakes, stability control, hill holder, brake assist and active hazard lights.

All models continue to come with Blue&Me Bluetooth connectivity, a six-speaker AM/FM/CD/MP3 player, leather-clad multifunction steering wheel, air-conditioning with pollen filter, Dualdrive electric power steering, power windows/mirrors and remote central locking.

In addition, S variants offer an exclusive Blue Jelly Bean colour choice, sports body kit with spoiler, 15-inch alloy wheels, fog lights, dark chrome exterior accents, body-coloured mirrors, tinted rear windows, sports seats, sports mode, a silver dash panel, leather flat-bottom steering wheel with red stitching and chrome gearshifter with black insert (manual only).

Finally, Lounge buyers also score new 15-inch alloys, steering wheel paddle shifters, a fixed glass roof with sunblind (hatch only), chrome bumper accents and climate-control.

All new Fiat 500s continue to be covered by a three-year/150,000km warranty including roadside assistance.

Fiat 500 sales have boomed in Australia since Fiat Chrysler Group Australia relieved independent importer Ateco Automotive of local Fiat distribution rights in May 2012 and then axed base 500 pricing from more than $20,000 to just $14,000 drive-away in June 2013 (Entry-level pricing was lifted to $15,000 in June this year.)

That led to a 376 per cent sales spike last year and a 142 sales lift so far this year, when the 500 was the nation's second best selling micro car behind the Mitsubishi Mirage but ahead of the Nissan Micra, Suzuki Alto, Holden Barina Spark and others.

In the past 12 months, more than 4000 Fiat 500s have found homes in Australia. Less than 3000 were sold in the five years or more prior to that, since the born-again 500 arrived Down Under in February 2008.