The new gasoline Mild Hybrid engine, which builds on the heritage of the famous Fire engine, more than 30 million of them were produced, implements a 1-liter, 3-cylinder engine configuration with peak power output of 70 hp (51 kW) at 6,000 rpm and peak torque of 92 Nm at 3,500 rpm. The cylinder head has two valves per cylinder and a single camshaft with continuous variable valve timing (the timing is chain-driven). The structure includes a compact combustion chamber, high-tumble intake ducts and external EGR (Exhaust Gas Recirculation), providing a remarkably high compression ratio (12:1), which translates into better thermal efficiency. The crankcase, developed in collaboration with Teksid, is made of high-pressure die-cast aluminum alloy with cast-iron cylinder liners, to reduce startup times and contain the weight of the engine to just 77 kg. Additionally, friction is reduced using a crank mechanism with a bore/stroke ratio of 1.24 and a connecting rod/crank device with a 10 mm offset to maximize efficiency.

The BSG system is mounted directly on the engine and is operated by the belt that also drives the auxiliaries. The system recovers energy during braking and deceleration, stores it in a lithium battery with a capacity of 11 Ah, and uses it, at a peak power of 3,6 kW, to restart the engine in Stop&Start mode and to assist it during acceleration.

This technology allows the internal combustion engine to switch off, even at speeds below 30 km/h, simply by shifting into neutral (the dashboard, which displays information on the hybrid system, prompts the driver when to do so). In coasting mode, the lithium battery powers all services, ensuring the driver has full control of the vehicle.

The Mild Hybrid propulsion unit in the latest Panda and 500 Hybrid Launch Edition is combined with a 6-gear C514 manual transmission evolution (transverse gearbox, front-wheel drive), with contents aimed at enhancing maneuverability and improving efficiency, including new low-friction bearings and gaskets, the use of a specific high-efficiency lubricant and a never seen before 6th gear ratio that improves fuel economy in out-of-town driving. The comfort-related aspect has also been taken into consideration by optimizing the gearbox system support. Lastly, the new system involves lowering the entire power unit 45 mm so the car behaves better on the road thanks to the lower center of gravity.