The Palio is basically an updated and much improved version of Fiat's 178 world car platform. Or to make it simpler, a new Siena without a boot. The Palio starts off with a sizable size advantage and in fact is a class bigger than most of the cars it competes with. Unlike several of its rivals, the Palio was built from a clean sheet of paper. Designers made it as wide and long as they wanted as they were not constrained by government-imposed size limitations. Cars like the Zen, Santro, Matiz, Alto, and Wagon R are all built to fit a size template laid down in their countries of origin. The only other cars in this segment not developed in such a fashion are the Uno and the Indica, the latter mirroring virtually the same design concept as the Palio.
  
The new Palio you see before you is a result of an extensive revision of Fiat's world car. The earlier car's heavy dumpy, Siena-like looks are now gone. In its place a fresh modern face, penned by the hand of master designer Guigiaro, the man the world's motoring press described as the designer of the century. The focus of the new design are the headlamps. Housed in long slender, multi-reflector nacelles, these lamps give the new Palio a distinct sense of identity. And bang in the centre of the headlamps is the beautiful blue Fiat centenary badge that represents the companies 100-year heritage. While the nose is substantially changed, the rear of the Palio stays much closer to the original, though the detailing of the 'bejeweled' tail-lamps is new.
  
Look closely at the fenders, the doors and you'll see a familiar sight -- the Siena. Even though the Palio's chassis is one of the stiffest available, Fiat in India has further strengthened the floor-pan, fire-wall and other key areas of the chassis. Safety, ride and handling are the beneficiaries of the increased rigidity of the monocoque chassis or bodyshell.
  
Though very similar to that of its 178 world car sibling the Siena, the Palio's suspension has been altered for the upgraded model, as well as for easier manufacture in India. While the semi-independent rear suspension system retains the progressive rate springs that make the Siena ride so well, the front suspension gets more conventional constant rate springs. The entire suspension has got a 20mm height increase and there are anti-roll bars both front and rear.
  
Both the wheelbase and the track of the Palio have been upped in the search for more stability and grip. The front suspension also uses an improved wishbone as well as a longer steering arm, both in the search for less understeer. While the 1.6 model gets ABS, brake forces on other Palios are distributed evenly by a pressure control valve.
  
The 1.2 and 1.6 models have different spring and damper settings, the sporty 1.6 obviously riding on a stiffer set-up.
  
Beefing up the chassis and suspension has made the Palio pretty heavy. Compared to its sibling the Uno, the 1.2 Palio tipping the scales at 1015kg is a whopping 190kg heavier. In fact, the Palio is more in the league of mid-size cars weighing more than cars like the City and Ikon.