Fiat claims to have made significant improvements to both the on- and off-road capabilities of the new Panda 4×4. It’s permanent 4WD is managed by a “Torque on demand” transmission with two differentials and electronically controlled coupling.

Combined with Electronic Stability Control (ESC) and an Electronic Locking Differential (ELC), which improves traction by directing power away from the wheels losing surface contact, the Panda 4×4 should again be a competent off-road tool. Its compact dimensions should also aid its mud-plugging talents.

The new Panda 4×4 should be just as capable as the last two cars to wear that badge thanks to its permanent four-wheel drive system, skinny tyres and generous ground clearance. It’s a chunky looking thing too, with body-coloured ‘4×4 style’ bumpers with satin aluminium finished skid-plate, roof rails, side mouldings with ‘4×4’ logo, black wheel arches and side skirts.The 15-inch dark alloy wheels with raised ground clearance suspension finish off the transformation to all-weather workhorse.

There are two engines offered with the Panda 4×4 – the brilliant TwinAir 0.9-litre petrol (85hp), and diesel MultiJet (75hp). The petrol car combines low emissions with reasonable performance (and a charismatic soundtrack) – maximum speed is 103mph (Trekking 106mph), official Combined Cycle fuel consumption of 57.6mpg (61.4mpg) and a CO2 figure of 114g/km (105g/km). The diesel makes 99mph (100mph), returns 60.1mpg (67.3mpg) and puts out 125g/km (109g/km).

Pricing for Fiat’s new Panda 4×4 and Trekking has just been announced – the range starts at £13,950 for the 0.9 TwinAir 85hp 4×4, rising to £14,950 for the 1.3 16v MultiJet 4×4 diesel version. The two-wheel drive faux-SUV Trekking starts at £12,450 for the TwinAir and £13,450 for the MultiJet.