View images of the Ford Focus RS and Ford Fiesta at the 2008 British motor show

This will accelerate the Ford Focus RS from 0-60mph in less than six seconds and on to a top speed of more than 150mph.

The RS will be faster than all its hot hatch rivals, including the Vauxhall Astra VXR, Honda Civic Type-R and it will take on the scorching four-wheel-drive Subaru Impreza STI and Mitsubishi Lancer X.

Despite its huge power the Ford Focus RS will be front-wheel-drive and features technology to reduce wheelspin and tugging of the steering wheel under hard acceleration.

View images of the Ford Focus RS at its Dagenham launch

Ford has even designed a new technology it calls ‘RevoKnuckle’ to optimise the front suspension setup and make the Focus RS handle better than any front-wheel-drive car its built before.

Handling has been tuned over countless laps of the gruelling Nurburgring Nordschleife test track in Germany.

Project leader Jost Capito said: “The result is a lightweight set-up that will deliver the right blend of traction and razor sharp controllability.”

EXCLUSIVE: First glimpse of Ford Focus RS

Ford also unveiled the all-new Ford Fiesta, weighing 40kgs less than its predecessor and featuring a modern new design and a new engine line-up.

It was announced the Ford Fiesta ECOnetic model will produce only 98g/km of carbon dioxide emissions (tax band A) and will be capable of an incredible average fuel economy of 76.3mpg.

The new Fiesta Zetec S will get a 1.6-litre petrol engine with 120bhp which accelerates it from 0-60mph in 9.9 seconds and still achieves an average fuel economy of 47.9mpg.

The Ford Fiesta range will start at £8,695 when it goes on sale in October and will feature a wide range of specifications from basic ‘Studio’ up to range-topping ‘Titanium’.

Check out the Auto Trader British International Motor Show microsite for more news, images and videos from the event.

And don't forget to visit us at the Auto Trader stand (stand N116) at the British Motor Show. We're making the world of cars easy, with a range of interactive features to help motorists to find their ‘ideal match’ of new and used cars, a recording area for motorists to complete a video review of their car PLUS 100 ways to reduce the cost of your motoring.

Check out the Ford Focus RS's little brother - the Ford Focus ST: