GTi, VXR, Type-R, RS, Renaultsport, this is the language of the hot hatchback. These brands are carefully nurtured by their respective manufacturers and applied only to the sharpest, fastest models on the books. They act as a guarantee of performance, excitement and status to the buying public and the kudos they generate is reflected downward, raising the profile of the less extreme, more affordable derivatives in the range. These days, Fiat's hot hatchbacks carry the Abarth badge but that's the only badge they carry. You won't find the Fiat insignia anywhere about the person of the Grande Punto Abarth with Fiat taking the unusual step of setting-up its sporting line as a model range in its own right.

Karl Abarth was already a five-time European motorcycle racing champion, something of an expert in the field of car modification and married to the secretary of Ferdinand Porsche's son-in-law when he established Abarth & C in 1949. This car tuning business began its association with Fiat in the early 1950s, specialising in making racing and performance modifications to the Turin manufacturer's products. Then, in 1971, Fiat brought the firm in-house and began using Abarth's expertise and scorpion badge on its quickest cars. Today, Fiat is busy forcing the Abarth brand back into the limelight riding on the bodywork of fast Fiats like the Grande Punto Abarth.

The sight of a 1.4-litre engine greets you as you lift the Grande Punto Abarth's bonnet, not quite the power packed piece of plumbing that hot hatch enthusiasts might have been hoping for. But wait, this is the modern era and the latest technology can make 1,368cc go a long way. With the aid of a Garrett turbocharger, the 1.4-litre T-Jet engine can deliver either 152bhp in standard form or an impressive 177bhp if you go for the range topping Esseesse (try saying that with a mouthful of Jacobs cream crackers) version. The figures that matter for the two versions are the respective 8.2 and 7.5s for the 0-60mph sprint and the 129 and 133mph top speeds. Rest assured, the Grande Punto Abarth is quick.

"Running costs have a nasty habit of turning many a hot hatchback dream sour. Not here."

At the centre of the dash is the big silver button that says 'Sport Boost'. With its Knight Rider overtones, it's sure to be a tough one for any Grande Punto Abarth owner of a certain age to keep their fingers off. Rather than launching the car through the air a la KITT's Turbo Boost button, it delivers a torque increase from 200Nm to 239Nm and gives the steering extra weight. Compared to standard Grande Punto models, the Abarth has a track that's widened by 6mm, a braking system that's upgraded to a four-piston Brembo set-up and firmer sports suspension.

The Grande Punto Abarth is crawling with scorpions but pest control services will not be required. It's the Abarth scorpion coat of arms that crops up on the grille, the tailgate, the wheel hubs and mounted on each flank just behind the door handles. To further emphasise the car's sporting prowess, the elegant shape of the standard Grande Punto is given more aggression with a redesigned front bumper sporting enlarged air-intakes and round fog lights. The side skirts and wheelarch extensions are in black plastic while the rear end gets the now obligatory diffuser effect as the plastic under body curls up into the back bumper. There's also a modest roof-top spoiler but overall, Fiat has avoided going too over the top with the look of the Abarth, preserving the classy lines of the standard Grande Punto in the process.

It's a tale of more scorpions inside the Abarth, the sculpted sports steering wheel gets one at its centre and there's another on the passenger side of the dash. The gear lever and the steering wheel are finished in leather with prominent red stitching and this can be carried over on to the dash and the seats if customers so desire. The centre console is finished in 'carbon effect' trim and the instruments have been given a sportier flavour.

Standard equipment levels on the Grande Punto Abarth include Fiat's Blue&Me hands-free communications system, an MP3-compatible stereo, air-conditioning, tinted windows, cruise control and a multi-adjustable steering column. Safety wise, there's plenty thrown in including front, side and window airbags, ABS and ESP stability control.

Having settled on a Grande Punto Abarth to the exclusion of all the other tempting fast hatchback choices that the market has to offer, buyers are faced with another tough decision. The standard Grande Punto Abarth looks very attractively priced when you weigh-up its performance against alternative models but there are two upgrade packs which can take it to the next level. Stage one is the Assetto kit which adapts the chassis and suspension of the car. Shorter springs which lower the car by 20mm and cross-drilled brake discs are introduced along with other modifications and the package is set off by a set of 18" white alloy wheels shod with Pirelli P Zero tyres. If you go for the Assetto kit, you can then make the upgrade to the Esseesse (SS for short) kit. Here there's a larger turbocharger, new injectors, a freeflow exhaust system and a special air-filter which boost the power output from 152 to 177bhp. The total cost of both kits is £3,500.

Running costs have a nasty habit of turning many a hot hatchback dream sour but the Grande Punto Abarth does a better job than most of staying within budget for the younger buyers to whom it will appeal. The 1.4-litre turbocharged engine is surprisingly efficient with combined fuel economy of just under 41mpg. Obviously, driving the car at nine tenths will see the mpg figure plummet accordingly but it's good to know that respectable economy is possible with a little self-control. Emissions of 162g/km will also help avoid the more extortionate taxation penalties.