Fiat has developed a new diesel engine which will initially just be used for its new Bravo range.

The new Euro V compliant 1.6 MultiJet 16v engine can be specified with an ‘Eco’ pack which incorporates optimised aerodynamics, low rolling resistance tyres and ‘taller’ gear ratios to return 62.7mpg and carbon dioxide emissions of 119 g/km.

Two different engines are being produced: one developing 105bhp at 4000rpm and torque of 290 Nm (214 lb ft) at 1500 rpm; the other developing 120bhp at 4000rpm and torque of 300 Nm (221 lb ft) at 1500 rpm. Both engines come with a manual six-speed gearbox.

The new engines will help the Fiat Group lower its average CO2 emission levels.

Sergio Marchionne, Fiat Group CEO, said: "Regardless of what other car makers will do, our group is committed to reaching the lowest weighted average CO2 emission level for the cars it produces by 2012."