1989 Lancia Delta Integrale on 2040-cars

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New electric Ypsilon city car is Lancia's last bid for relevance

Stellantis-owned Lancia has unveiled its first new model in well over a decade. Offered only with an electric drivetrain, the new Ypsilon is a small, premium four-door hatchback developed to make the 118-year-old Italian brand relevant again after an extended period of decline. We shouldn't be writing this story, because Lancia shouldn't be around to release a new Ypsilon. Sergio Marchionne, the CEO of Fiat-Chrysler Automobiles until his death in 2018, planned to close the brand. It was too small, too heavily reliant on the European market, and ultimately more of a burden than anything else. He executed his plan gradually: first, he tried giving Lancia a handful of Chrysler models to sell in Europe, which didn't work. Then, he gradually pulled the plug on Lancia's range and foreign operations, leaving the company with a single model (the last-generation Ypsilon) to sell in a single country (Italy). Rewind to the 1990s, and that's exactly how Autobianchi shut down. History didn't repeat itself this time. Stellantis executives decided to give every brand in the group a chance to prove why it deserves to exist. The third-generation Ypsilon (we're counting the Y launched in 1995 as the original) is Lancia's first argument. Having access to its parent company's parts bin helped keep development costs in check, and the hatchback shares its Common Modular Platform (CMP) with other small hatchbacks you'll see meandering across Europe such as the Peugeot 208 and the Opel Corsa. Visually, it borrows a handful of styling cues from the Pu+Ra HPE concept unveiled in 2023, like low-mounted headlights and three thin strips of LEDs on the front end. Out back, you'll find a pair of round headlights ostensibly inspired by the ones fitted to the Stratos, a coupe that cemented Lancia's reputation as a force to reckon with in the World Rally Championship (WRC) during the 1970s. That's as much of Lancia's rallying heritage the brand chose to channel, however. Instead, it's highlighting the upmarket chapter of its history: for decades, the brand was associated with luxury rather than with performance. Italian presidents rolled around in purpose-built Flaminia sedans in the 1960s. Rallying was the brand's claim to fame in the 1970s and the 1980s, and Lancia unceremoniously became associated with badge-engineering during the 1990s. This is where its decline began. The new Ypsilon's job is to reverse it by giving buyers a more stylish alternative to, say, the 208 it's based on.

Kimera EVO37 Martini 7 celebrates Martini Racing's seven WRC trophies

Two years ago, Kimera launched its EVO37, a modern and thoroughly gorgeous tribute to the 1983 Lancia 037 World Rally Championship car. When Kimera put its EVO37 on the start line of the Sardinia Rally last year, the coupe wore the same Martini Racing Team colors used by the 1983 car. This year, Kimera is using a different Martini Racing livery to debut an evolution of the Kimera EVO37 that's even closer to the original and celebrates the seven Lancia-powered Martini Racing Team World Rally Championship titles. The 037 won a single title, the last two-wheel-drive WRC entry to do so. The Lancia Delta S4 and its variations won the remainder. Company boss Luca Betti again worked with Miki Biasion, who won back-to-back WRC Driver's Championships piloting the Lancia Delta, and Lancia engineers of the time to lighten and sharpen the EVO37 into the Martini 7. Starting with the performance mods, the supercharged and turbocharged 2.1-liter four-cylinder now makes 550 horsepower instead of 505 hp, and 406 pound-feet of torque. Power heads to the rear axle via a standard manual or optional sequential transmission, but the gears have shorter, more rally-like ratios. Gawkers are invited to further appreciate what lies behind the cockpit thanks to the new quick-release lower bumper as was found on the Lancia 037 Evo 2. Undoing the clips shows quad pipes in a white ceramic coating matching the new paintwork that runs all the way up the exhaust runners. The new carbon fiber aero package adds intakes behind the front doors, vents on the tops of the fenders, and additional descending steps in the engine cover surround. The new wheels recall the Delta Evoluzione, as does the passenger compartment, now made entirely from carbon fiber and getting the car down to about 2,425 pounds. The seats are inspired by those in the Delta S4, trimmed in blue perforated Alcantara with red stitching that matches accents on the door cards and ceiling. The gauges glow in fluorescent orange, the buttons and knobs laid out just as they were in the 1983 Lancia 037. The pearl effect white Martini Racing Livery with blue, light blue, and red strips comes most resembles that of the special edition Lancia Delta Martini 5 and Martini 6 cars, produced in the early 1990s to celebrate the Delta's fifth and sixth WRC trophies.

Fiat contemplating sub-brand to compete with Dacia, Datsun

You can add Fiat to the admittedly short list of automakers considering a low-cost brand to rival Dacia. The inexpensive Eastern European brand from Renault-Nissan has performed on the balance sheet like a premium model line, and the money the alliance is taking off the table is encouraging other players to deal themselves in. Pretty soon Nissan's Datsun sub-brand will join the Dacia party, going on sale in Russia, Indonesia and India and will claim even more rubles, rupiahs and rupees for the parent company. Volkswagen recently said it will make a decision this year on a budget line for the Chinese market. With the euthanasia of Lancia and plans to move the Fiat brand upmarket, company CEO Sergio Marchionne wonders aloud to Automotive News Europe whether there could be room for a new budget brand underneath Fiat.
We're told that the initiative has been in the idea box for five years and even moved to the stage of name considerations, like Innocenti, but worries about profit kept it from realization. If such a range were to be developed, Marchionne says it couldn't be built in Italy and stay within budget, and the company is "analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable."