Fiat is following the move by Aston Martin with its Toyota iQ-based Cygnet.
The Abarth 695 Tributo Ferrari is powered by a 1.4-litre turbocharged T-Jet engine linked to an electromechanical paddle-shift gearbox.
The suspension and braking systems have been strengthened to cope with the extra power, and 284mm Brembo discs with four-piston calipers bring the car to a quick stop.
It also has performance tyres, which are fitted to Ferrari-inspired 17-inch alloy wheels, and a variable back-pressure exhaust changes the engine sound above 3000rpm.
The Abarth 695 Tributo Ferrari is only available in red, with carbonfibre door mirrors, grey inserts around the front air intakes and a grey rear diffuser. Xenon headlights are also standard, as is black leather racing-style seats, a leather steering wheel and aluminium pedals inside.
Abarth says the car has been produced because of shared values between the brands that include “a passion for performance, a racing soul, attention to detail and Italian style”.
No prices or on-sale dates have been released.