Lancia is working on downsizing its new Delta into something referred to as Deltina or “small Delta” in Italian. Delta will mark a milestone for Lancia when it’s launched in Italy this month as the first all-new Lancia since Musa back in 2004.

“We feel there is space for another model in between the Ypsilon and the Delta,” Lancia CEO Olivier Francois said. “In terms of design, we think we have identified the right product. We are currently running numbers to check its business feasibility.”
Francois did not say much about engines, but we do understand that a number of Fiat Group powertrains will enter the fray. None are expected from Ferrari though. Multijet and Turbojet-badged types will be the clear choices for the car that will run on a stretched Fiat Grande Punto platform.

Sales have been around 300,000 a year at Lancia, a number that Mercedes-Benz sells of its new C-Class only. About 50,000 “Deltinas” could tick sales on an annual basis, according to Fiat insiders.