The pretty little Fiat 500 has been an incredible sales success for the Italian carmaker since its UK launch last year.

So a celebration is in order – and what better way to raise a smile than a three-chilli version of the aforementioned city car.

It’s called the Abarth 500, and as soon as you catch a glimpse of its stockier proportions, it’s hard to take your eyes off it.

Lots of small cars get the hot hatch makeover consisting of new bumpers, skirts, spoilers, decals, wheels and exhaust – but very few emerge from the modification factory looking as cool and cohesive as the Abarth 500.

It’s a homage to the original racing Abarth 500 of the 1960s, which hunted down far larger and more powerful cars and helped Abarth notch up a staggering 10,000 track victories and ten world records.

The modern Abarth 500 might not have its oversized engine hanging out of its boot like the original racer, but even dripping with rain in a saturated car park it has you reaching hurriedly for its keys and seems far more exotic than any other car worth £13,600.

But is it as good to drive as it is to look at, or is it all just war paint?

Small engine, big character

Under the short, sloping bonnet there is a 1.4-litre turbocharged petrol engine which likes to make itself heard thanks to a rorty twin tailpipe exhaust.

The 500 Abarth engine produces 135bhp and 152lb/ft of pulling power, which is enough to see off 0-62mph in 7.9 seconds and power it on to a top speed of 128mph.

It’s a bit quicker than its key rivals the Renault Twingo Renaultsport Cup (8.7 to 60mph) and Mini Cooper (9.4 seconds), but some way behind the hardcore Vauxhall Corsa VXR (6.8 seconds).

Press the throttle and the Abarth 500 feels extremely gutsy considering the diminutive size of its motor.

And it’s an engine with dual personalities. Leave the ‘Sport’ button on the dashboard alone and it’s smooth and only responds to fairly firm shoves of the accelerator. It feels perfect for relaxed town and motorway driving and economy improves.

There is even an indicator in the middle of the turbo boost gauge to tell you when to change gear to save fuel.

View our Abarth 500 slide show

It’ll achieve an impressive 43.4mpg on the combined cycle and emit 155g/km of carbon dioxide.

Dual personalities

Switch on ‘Sport’ mode and the engine responds with a bigger bite. The gearshift indicator no longer helps you to save fuel but goads you into using more, by flashing at maximum revs for optimum power and acceleration.

There is a real difference in the way the car feels. The steering gains weight and pulling power is boosted from 132lb/ft to 152lb/ft.

Thanks to the delivery of this muscle low down the rev range (at 3,000rpm) you don’t have to work the engine too hard to travel quickly, and the car feels faster and more accessible for it.

If you want to make your Abarth 500 even quicker it’s as easy as gathering together £2,500 extra for the official esseesse version (pronounced ‘essayessay’). Air filter and engine management tuning see power rise to 160bhp.

It’s not just faster in a straight line either; bigger Brembo brakes, lightweight 17-inch alloy wheels and revised suspension are also included in the esseesse kit which arrives in its own wooden crate adorned with Abarth scorpion logos and a commemorative plaque.

Esseesse performance kit brings 160bhp

We got chance to sample the esseesse at Gurston Down hill climb, a private road used by tuned road cars and racing cars of all shapes and sizes in close fought sprint competitions.

It certainly packs a bigger punch and will give cars with much higher price tags a run for their money – as is the Abarth way.

Terrier-like grip gives you immense confidence in the chassis of the standard and esseesse Abarth 500, and there is the full complement of safety aids to help keep the car under control in the event of a skid.

As well as the ESP (Electronic Stability Program), EBD (Electronic Brake Distribution) and HBA (Hydraulic Brake Assistance) there is also a feature called TTC (Torque Transfer Control).

And it’s this technology which is most interesting for driving enthusiasts because it’s not just a safety gadget, but a performance one too.

On the exit of a slow bend, when the inside wheel is most likely to spin under acceleration, the TTC delicately brakes the spinning wheel to give it more grip.

Driving around a tight figure of eight course with the system on and off it was impressive how much more grip and speed could be obtained with TTC, firing the Abarth 500 off down the road.

Winning charm

As you have probably guessed, this is one city car with heaps of character and happily this is reflected inside, where the atmosphere is very different from the more relaxed cabin of a Fiat 500.

The steering wheel is flat-bottomed, heavily sculpted and finished in black leather with red stitching.

It has bucket seats, leather surrounds for the instruments and a racey gear lever which sprouts from the dashboard.

The cabin is colour coded with the body’s paintwork and there are even racing pedals.

In the back it’s reasonably roomy for two adults, while the 185-litre boot isn’t huge.

There is a powerful Interscope stereo to listen to when you get bored of the purring exhaust (we never did) and Blue&Me Bluetooth communications and onboard computer.

We loved the Abarth 500. It’s fun to drive, turns heads, doesn’t cost the earth to run and costs just £13,600 to buy.

The Renault Twingo Renaultsport 133 Cup has extremely polished handling, but lacks the sheer charm and array of features found in the fun Italian.

And because it’s such a good package in every respect, we can’t think of another new car for the price we’d rather spend our money on.

Key facts

Model tested: Abarth 500
On the road price: £13,600
Price range: £13,600 – £16,100
Date tested: February 2009
Road tester: Andy Goodwin