HSE2

Throw a stone in the air in any British street and, chances are, it'll land on a Ford Fiesta. Over the past 25 years, it has become the supermini of choice for millions of UK motorists. As with pantos at Christmas and soggy Bank Holiday weekends, it's part of our national heritage.
But while it has outsold all its challengers – even in the mid-Eighties when it was a real duffer – the current car is too small, impractical and long in the tooth to compete head-to-head with its more contemporary rivals.

Which is why Ford is pushing the boat out with the latest version – the MkV. Unlike the past two evolutions – effectively facelifts of the MkIII launched in 1989 – the 2002 Fiesta is fresh from the ground up. Apart from a few switches and under-the-skin components, the new car has only its name in common with its predecessors.

On sale from March, the Fiesta is Ford's most important new car since the Focus, and it has a similarly tough brief. It must simply be the best supermini in Europe. But unlike the Focus, which has an easily definable customer base, the Fiesta has to appeal to one of the widest ranges of buyers around, from 17-year-old learners to 80-year-old retirees. Offend one group of con-sumers and it's very hard to get them back. All of which goes some way to explaining the Fiesta's inoffensive exterior design, which sits in a safety zone some way below the Focus and Ka.

Handsome rather than striking, it maintains a Ford-like feel thanks to the trademark styling tricks such as the raised wheelarches that disguise body height, blacked-out B and C pillars which accentuate length, and chunky wide-radius curves that impart a sense of strength and solidity. But while some will feel Ford has gone for the easy way out in terms of design, there was no criticising the build quality on our early production model. Panel gaps were wafer thin, the paint deep and the whole car had a feeling of robustness that its predecessor could never manage. Restraint was also the key word when it came to penning the cabin, which boasts a timeless rather than cutting-edge ambience. In keeping with many of its rivals, the Fiesta's dashboard has a two-tone design, with the main rail finished in dark plastic and the lower section housing the glovebox moulded from a lighter material.

There's also a hint of VW-style detailing, such as the raised air vents and the way in which the crisp, geometrical edges link the various elements. What is lacking, however, is something to mark it out from the opposition. A few visual or ergonomic treats along the lines of VW's blue-lit dials or even the Ka's wacky rotating glovebox would certainly lift the cold, calculating feel.

That said, the Fiesta is a fine piece of interior packaging, light years ahead of its predecessor. Thanks to an extra 40mm in the wheelbase, a 143mm increase in height and a body that's wider by 49mm, the new Ford is closer in size to the Focus than it is the outgoing car. Inside, these improvements are instantly noticeable. By making the Fiesta taller, the firm has been able to mount the seats higher and create a much greater feeling of space. Legroom is finally up to the class standard, while a rake and reach-adjustable steering column makes finding the perfect driving position easier than before. Indeed, our only gripe is that tall drivers will whack their kneecaps on the remote radio stalk below the indicator lever.

Space in the back has also been improved, with more leg and headroom. Although small door openings hamper access to a degree, the bench itself is well padded and comes with a full complement of three-point safety belts fitted as standard. Further back, the Fiesta's boot is decently shaped and can carry an impressive 284 litres of luggage with the rear seats in place and 613 litres with them folded. By mounting the rear lights high in the C-pillar, the tailgate opening is wide, with a decently low loading sill. Indeed, the only fly in the ointment is the lack of a split/fold facility on the rear squab.

Safety is another area where Ford has pulled out all the stops. Incorporating the Intelligent Protection System (IPS) that debuted in the Mondeo last year, the new Fiesta offers dual-stage front airbags as standard, with the option of side and roof-mounted curtain bags for those who want the ultimate in impact protection.

But it isn't the number of airbags and pre-tensioners alone that make the Fiesta such a safe-feeling vehicle – it's how the car behaves on the road that contributes most to the impression of stability. Working on the theory that avoiding an accident in the first place is the best way of keeping yourself and your car in one piece, Ford's chassis engineers have given the Fiesta a dynamic package that is the class of the field. Although there's nothing that innovative about the suspension design itself, with struts up front and a torsion bar at the rear, it's the way the two ends gel that mark it out as something special. By mounting the front suspension into a stiff subframe rather than directly on to the body, engineers increased roll stiffness by 40 per cent without compromising other key aspects of the dynamic package. At the back, new single-tube dampers, combined with minor changes, have been incorporated to improve stability under braking. In practice it all comes together beautifully.

From the moment you set off the car is working for you. The ride quality is exceptional – even better than before – with near-perfect damping and an uncanny ability to defuse potholes. Then there's the steering, which is sharp, lively and brimming with feedback. With all the elements stuck together the Fiesta moves into a league of its own. Mid-corner bumps are dispatched as if they weren't there, while odd cambers disappear. And although lifting off the throttle halfway through a bend still causes the front to tuck neatly in, the process is smoother and even more foolproof than before.

Four engine options will be available from launch: 1.3, 1.4 and 1.6-litre petrol units and an all-new 1.4-litre turbodiesel. Although the petrol mid-sizer is expected to be the big-seller it's the new 68bhp TDCi version that could well be the surprise package. Developed with the French PSA group and shared with the Peugeot 206, 307 and new Citroen C3, the engine develops 68bhp and 160Nm of torque at 2,000rpm.

It replaces the current Fiesta's unpopular 1.8-litre unit, and is lighter and more powerful. However, it's in the areas of economy and emissions where the new engine stands head and shoulders above its predecessor. Ford claims average fuel consumption of 65.7mpg, along with a CO2 emissions figure of a mere 114g/km.

But despite its accomplished cruising ability and general refinement, in terms of performance it feels slower and less flexible than its main rival – Volkswagen's 1.4 TDI. With 75bhp on tap and, more importantly, 195Nm, the VW three-cylinder is much more eager to spin up to speed and is equally hushed at motorway pace. It also matches the Ford unit for economy.

Finally, there are the Fiesta's brakes. These have a solid bite, direct pedal action and first-class stopping ability. Thanks to standard ABS, Electronic Brakeforce Distribution (EBD) and a dive-resistant suspension system, the Fiesta scrubs off speed very well without upsetting the car's overall balance.

So why does Ford engineer its standard supermini to be as much fun to drive as its sporting models? The simple answer is that regardless of how you drive, a car you're comfortable with is one that you will enjoy using. It flatters the average motorist and makes a good one feel like Colin McRae.

When the Fiesta arrives in March it will be entering a sector in the grip of a major shake-up. With the likes of VW's new Polo, SEAT's Ibiza, Citroen's C3 and Honda's Jazz all making their debut in the spring, buyers can expect a fierce price war. Unsurprisingly, Ford is playing its cards close to its chest on the subject of price and equipment, and final details won't be announced much before launch. However, early signs are that the Fiesta will be class competitive, with ABS and twin airbags as standard along with power-steering and remote central locking. So is it the leader of the field? We'll have to wait until prices and specs are announced before we can deliver a definitive verdict. But if first impressions are anything to go by, there won't be much to stop the Fiesta hitting the top of the class.

The Fiesta may not be Ford's real money-earner but it is crucial nonetheless. Get it wrong here and there are many rivals ready to snap up wavering buyers. Yet on this evidence, Ford needn't worry. The newcomer is a fine piece of engineering: well packaged and built, and good to drive. Only the reluctant turbodiesel and slightly sterile interior let it down. If the price is right, this sector could soon have a new champ.