The Palio ( Weekend) has nothing in common with the Punto.
It is based on the Brazilian Uno, and was Fiat's attempt to build a so called "World Car".
The project started somewhere in the nineties and was called WCP 178 WCP=Word Car Project.
Although not very successfully in Europe, in many other part of the world, the palio is already built in it's 4th version, and is built in several factory's around the world.
In Brazil, one of the largest car markets in the world, the car is still very successfully, even in rally racing...
(The Pick-Up version of the Palio, the Strada, is still sold in Europe.)
We drive a 2000 model Palio Weekend 1,6-16V, built by Fiat-Tofas in Turkey for more than 6 years and 100.000 km now, and like the car a lot!
We intend to keep it for some more years!
In Holland only about 3500 were sold between 1996 and 2001, the Mk2 and later versions didn't make it to our market...!