The Italian manufacturer is currently designing a hybrid drivetrain capable of the ultra-low CO2 emissions and it is possible it could be used on a future model.
Fiat is one of only two manufacturers to boast average CO2 emissions across its range of less than 130g/km despite not having a mass-produced hybrid or electric vehicle at the moment.
It is helped by models such as the Punto Evo and Fiat 500, both of which deliver sub-120g/km emissions.
The small Panda city car could make use of the hybrid system currently being developed by Fiat engineers.
The system matches the 900cc TwinAir two-cylinder petrol engine to an electric motor fitted into the body of the gearbox. The motor is powered by a small battery and would be used to power the car when the engine is idle.
Other models could possibly benefit from being fitted with hybrid technology, including the Fiat 500. The popular city car, Fiat’s answer to the Mini, is currently being used as the basis for Fiat’s first all-electric vehicle which will be released in the US in 2010.
The Fiat 500 has already been modified by French car maker Atomik to create the Atomik 500 electric car with a 0-62mph sprint time of less than five seconds.
Fiat has not confirmed when or where any future hybrid technology will be used, but it hints at an even greener future for the Italian manufacturer.