Fiat has introduced the new mild hybrid versions of the 500 and Panda models, which use a new electrified three-cylinder powertrain that claims to offer up to a 30 percent cut in CO2 emissions.

The new 1.0-liter engine is part of the Firefly family and replaces the outgoing 1.2-liter four-cylinder petrol unit; it features a 12-volt belt-driven starter generator and a 11 Ah lithium-ion battery while it produces 69 HP (70 PS) and 68 lb-ft (92 Nm) of torque.

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Fiat claims that their new mild-hybrid system is capable of switching off the petrol engine even at speeds below 30 km/h (19 mph) when the driver shifts to neutral. During coasting mode, the lithium-ion battery provides the juice for all the auxiliaries.

The system harvests energy during braking and deceleration, stores it in the lithium-ion battery and then uses it to restart the engine and to improve acceleration.

The new electrified powetrain also debuts Fiat’s new six-speed manual transmission, which helps improve fuel economy in out-of-town driving, and sits 45mm lower in the engine bay, making the car handle better on the road according to the Italian car maker.

The new Fiat 500 and Panda Hybrid will be distinguished by the special ‘Hybrid’ badging, an exclusive ‘Dewdrop Green’ exterior color and other model-specific featurs. Fiat will also offer Launch Editions of both models, featuring a special fabric upholstery created by recycled plastic.

Fiat will launch the new 500 Hybrid this February in Europe, followed by the Panda Hybrid in March, marking the beginning of the new electrification era for the brand; 2020 will also be the year we’ll get to see the next generation of the 500, which will be offered in pure electric form only and will be produced at the company’s factory in Turin, Italy.