The Car That Could Save Ford

At last, Ford is bringing its stylish, well-designed, fuel-efficient, and successful Fiesta to America. It's about time

By David Kiley

Editor's Rating:

The Good: Snappy exterior design and dash doesn't say econo-box

The Bad: Lacks a few features, like a sliding rear seat, to keep costs down

The Bottom Line: Handsome, fuel-efficient, and makes a statement at a low price

Reader Reviews

Up Front

It's hard to believe that a small car, smaller even than a Ford Focus and a car whose backseat should come with a bottle of olive oil to lubricate occupants' legs, could be key to Ford's (F) comeback in the U.S. But it's true.

The Ford Fiesta, which will be launched into dealerships in Spring 2010 as a 2011 model, is the first of a series of so-called world cars—the same car sold on every continent. It's a risky move by Ford, as the automaker has been down this road before and hit nothing but axle-breaking potholes.

Recall the mid-1990s Ford Contour/Mercury Mystique, which was the same as the European Mondeo? It sold O.K. in Europe but was viewed as a rental car at best stateside. And the original Ford Focus? That car was praised for nimble handling but fell into disrepute when Ford botched the manufacturing launches on multiple continents, and glitches and recalls followed.

The Fiesta is a big step in the right direction for Ford, despite the car's small package. Already a big hit in Europe and Australia and catching on in China, the car, which will be offered in both hatchback and sedan versions in the U.S., looks better than the comparatively bland offerings from Chevrolet (Aveo), Toyota (Yaris), Scion (xA), Nissan (Versa), and Hyundai (Accent).

When viewed in profile, the car appears to be up on its haunches, thanks to a strong character crease that slopes down from the rear of the car to the front. The hatchback, which is the popular model style in Europe and the one lent to me by Ford, is carved at the rear to more resemble a small SUV than a traditional hatch like, say, the Volkswagen (VOWG) Golf/Rabbit.

The design, which Ford Europe design chief Martin Smith calls "kinetic," turned heads in Ann Arbor, Mich., a town used to seeing future vehicles running around since four Asian automakers have research and design centers here. The mother of one of my son's schoolmates gushed, "Wow, that is sharp," as she looked back with disdain at her Chrysler minivan.

Looks are important. But the real question facing Ford is what the future of small cars is in the U.S. given the unpredictable fluctuations of gas prices. Last summer, when gas was at $4.50 per gallon and above in many parts of the country, not only were Toyota (TM) Prius hybrids flying off dealer lots, but so were Ford Focuses, Honda (HMC) Civics and Fits, and even Chevy Cobalts. For the last six months, though, after gas prices tumbled, small cars have been piling up on dealer lots like beach toys after Labor Day.

But Ford is betting the Fiesta will transcend the normal market for small cars. It's counting that aggressive styling combined with what Ford hopes are head-of-the-class quality ratings will draw not only more 20-32-year-olds who have historically traded out of Ford for Honda, but also baby boomers and empty nesters downsizing their lives and lowering their living costs after seeing retirement accounts vaporize in the recession.

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