Fiesta is here to stay

It takes a step up from the current Fiesta model and follows the cheeky styling of the Mazda2 — not surprising, really, given Mazda is an associate company of Ford and both are on the small-car platform.

Ford decided to retain the Fiesta name, instituted 32 years ago, after speculation it would be called the Verve, used when the Fiesta concept car was first shown last year.

The styling — Ford calls it Kinetic — follows the same theme as the bigger Mondeo and even the latest Ford Falcon.

The nose is dominated by a huge, low-slung grille that resembles a mouth. Much of the Verve's features have been carried over, which Ford Europe's CEO John Fleming said was important to maintain momentum in buyer interest. “The Verve concept produced amazing response,” he said.

“This led to the design becoming the blueprint for Ford in the future.

“All C-cars (C represents the small-car segment) will be like the new Fiesta — smaller, lighter and greener."

“By 2010 it will extend out of Europe and into the US and then around the world.”

Fleming said the Fiesta was one of 20 new models that would be launched by Ford in 2008. “That's a record, because the previous best was 14. This (new product roll-out) is very important to us. It will lead us to report a profit by 2009.”

Ford has reported huge losses over the past five years, which led to the offloading of Aston Martin in 2007. It is currently in negotiations to sell Land Rover and Jaguar to the Indian conglomerate Tata.

It retains Volvo and Mazda.

Fleming said a four-point plan would be followed to restructure Ford and return it to profit.

“This would involve delivering new product, corporate restructuring and bringing the company together to leverage the strength and avoid duplication.”

Fiesta will come to Australia later this year as a five-door hatch, though may also be introduced as a three-door, just as Mazda had introduced a three-door Mazda2 to complement its five-door version.

Ford said the Fiesta would showcase low-emission technology, including a model with less than 100g/km of CO2, as well as one that would operate on E85 ethanol fuel.

The Fiesta, which is Ford's second-biggest seller after the Focus, is being built in Germany and Spain though will also soon go into production in China and, from 2010, in the US.

Meanwhile, Ford has debuted its new small SUV, the Kuga, based on the Ford Focus, to go on sale in Europe in June.

Ford Australia spokeswoman Sinead McAlary said they had shown some interest in the Kuga crossover but a business plan was still a “work in progress.”