Fiat took over Turin yesterday to relaunch its Cinquecento or 500cc model, and crown recovery after years of losses. A spectacular party with a concert platform floating down the Po was joined by prime minister Romano Prodi. The new Fiat is a sleeker, slightly larger version of the car made from 1957 to 1975 which symbolised Italy's boom, and in which, according to popular legend, many Italians were conceived.

Sergio Marchionne, chief executive, told La Stampa he scripted the 500's TV ad by featuring heroes from assassinated anti-mafia judges to motorbike champ Valentino Rossi, adding: "We spit blood to clean up and restart Fiat. When I took over there was a smell of death here."

Fiat's relaunch has boosted its home city, and thousands of Torinese were on the streets for the launch party, shown live on TV, with original 500s on parade waving Italy's flag. The redesign follows the Beetle and Mini, but Mr Marchionne had a twist: "We are now the Apple of carmakers; the new 500 is our iPod."