Following the moves of other car manufacturers that have revived classics (e.g.: the MINI and the New Beetle), Fiat is bringing back it’s old adorable Fiat 500, the town car with a boxer two-cylinder engine that came in either 479cc, 499cc, or 594cc displacements. There were even estate and convertible versions.

Fiat’s new Fiat 500 is set to be a 2007 release model based on the Fiat Panda platform, and word is that the two-cylinder configuration is coming back, now in turbocharged form! The engine is set to be a two-pot 0.9 litre engine making between 90hp to 110hp and 120Nm of torque, which is likely to kick in pretty low in the torque band considering the usual turbocharged torque curve patterns. The photo above is a computer generated rendering of how the new Fiat 500 could potentially look like, but expect the production version to retain all the retro looks of it’s predecessor.

More powerful variants will use the new Fire 1.4 litre engine that will also be put into the new Fiat Bravo. It makes about 150hp, doesn’t look as nice on paper as the 1.4 TSI from Volkswagen but still commendable.

Will the modern interpretation of the Fiat 500 enjoy the same runaway success that BMW has had with the New MINI Cooper? In case you don’t know how the original Fiat 500 looked like, a photo of a 1973 variant is available after the jump.