Ford could bring back famous axed car: Tie-up with Volkswagen could lead to the return of iconic hatchback as an electric car: Reports

Two years after it was retired to the hatchback hall of fame, the iconic Ford Fiesta could return as a rebadged Volkswagen – and an EV.

That’s the word from Carscoops, which claims the move is shaping up as a very real possibility as Ford deepens its ties with the German automotive giant.

VW’s Head of Sales and Marketing, Martin Sander, told Carscoops that previous collaboration amongst both brands in the past has been “very, very, very successful” and that it is open to sharing technologies in a similar way moving forward.

Ford’s Explorer and Capri EVs use the same platforms as the VW ID.4 and ID.5, meaning Ford could develop new EVs with the same MEB architecture that will underpin the incoming ID.1 and ID.2 city cars.

The latter is only slightly longer – 18mm – than the Fiesta, and shares the same five-door hatchback layout. As Carscoops noted, the role of the ID.2 and a new prospective Ford Fiesta would be virtually on par.

Ford is yet to confirm the possibility of building a new entry-grade hatchback, let alone an electric one, the brand’s specialised 'Skunkworks' team has been working on new models, including a circa $25,000 (A$38,750) EV aimed to rival Tesla and BYD.

It is rumoured to adopt a lithium-iron-phosphate (LFP) battery, which is regarded for its durability and cost-advantages over conventional lithium-ion batteries. The same technology is also set to underpin a new electric mid-sized pick-up from the Skunkworks team.

A timeframe from Ford on its affordable EV range remains unconfirmed for now, although it isn't likely to be long until the rumours about a prospective Fiesta EV are confirmed or quashed.