Since the first generation of the Panda, Fiat has always offered four-wheel drive versions of its popular city car and this is not going to change with the newest iteration of the model that was unveiled at last year’s Frankfurt Motor Show.

Spied here during cold weather testing in Europe, is a prototype of the third generation Panda 4×4, which is expected to join the range towards the end of the year or in early 2013.

The new Panda 4×4 will use a similar all-wheel drive setup with its predecessor featuring a hydraulic clutch in front of the rear differential. Engine choices are believed to include both diesel and petrol units.

Aside from the all-wheel drive system, Fiat’s engineers will make changes to the suspension that will be strengthened and raised appropriately, as well as to the steering system.

Like the current model, the new Panda 4×4 will also stand out from its 2WD brethren thanks to some mild styling changes to the front bumper and grille assembly along with the addition of plastic cladding around the wheel arches.

A higher-riding and more distinct looking 4×4 Cross model will likely make its appearance at a later date.

Photo credits: Carpix for CarScoop

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