The new Ford Fiesta couldn’t have arrived at a better time – thousands of buyers faced with growing bills are considering smaller, more efficient cars and the ‘downsizing’ trend is gathering momentum.

Ford’s latest take on the iconic Fiesta should be the first choice for this growing crowd.

Andy Goodwin found it ticked every box, and should be the car to keep Britain motoring into the next decade.

If current sales trends continue the Fiesta-sized supermini will soon overtake the Focus-sized hatchback as the biggest selling, and most important class of car.

Ford is so confident in the Fiesta’s appeal the manufacturer is making it a world car, with versions being released on the other side of the Atlantic and Pacific oceans.

So it’s good to know that this Fiesta is an absolute corker, which has taken almost the same leap forward as the Focus did when it replaced the Escort.

Take off all its badges and it’s hard to see any relation to the previous Fiesta, but Ford’s Kinetic Design look is firing on all cylinders, giving the new model a very strong brand identity which links it closely with the Focus and Mondeo.

The headlights stretch back over the front wheels and the grille is low and wide, staying faithful to the ‘Verve’ concept car unveiled at the 2007 Frankfurt motor show.

Expect bolder colours too, the strong design of the car easily wearing a shade of lime green and maroon which would bring unwanted attention if the body was less attractive.

Another cool touch is the door mirrors, which now sit lower and are mounted further back. Their shape is more aerodynamic and far more pleasing to the eye.

Impressive new interior

Inside it’s a million miles from the last Fiesta too. Gone are the functional but unimaginative forms of the old dashboard, in their place a swooping new fascia and multifunction information screen.

The shape of this dash gives the driver a more cocooned feel than before, and for the first time in a Fiesta the steering wheel can be brought out towards the driver and pushed into the dash, rather than just moved up and down.

And, current Fiesta owners will be pleased to know the front seats adjust for height, curing the lofty driving position of old.

The central cluster of control buttons is laid out like a mobile phone, tapping into most customers existing knowledge so they can use the system quickly and efficiently.

Keying through the various options for radio and telephone proves intuitive and the backlighting looks modern and attractive.

The instruments are housed in pronounced pods under a small visor and stay lit at all times, which is handy on dull days and driving through tunnels.

Certain exterior colours are available with coloured dashboards, which are not to everyone’s taste but give the car an added dose of character.

View our Ford Fiesta UK drive slide show

Soft-touch plastics adorn all the parts of the cabin which are on show and their build quality and feel beats anything in the supermini class, and takes on cars with a higher price.

Gone are the days of cigarette lighters – instead there are strategically placed ‘charging points’ for mobile phones and, MP3 players and portable sat nav devices.

The boot is the biggest of any Fiesta yet, measuring 295-litres, and the rear seats split and fold down to accommodate larger loads.

But the Fiesta is lighter than before, with a cut of 40kg compared with equivalent models in the previous generation.

It’s the equivalent of leaving a boot-full of holiday luggage at home and brings increases in performance and fuel economy.

Superb suspension

Out on the open road the Fiesta feels as poised and precise as you could ever want, putting some more overtly sporting machinery to shame.

The Mazda 2 has excellent handling and was our class-leader, but the Fiesta just manages to outshine it despite them sharing 50 per cent of parts.

Ford has tuned the suspension perfectly for British roads, meaning it handles keenly without being too harsh over bumps and lumps.

We drove the Fiesta with both standard and sporting Zetec-S suspension set-ups and found both to be excellent.

As expected, the Zetec-S can carry more speed through corners and has the most grip, but the standard car is not far behind and it’s more comfortable.

Increased power and lower emissions

While the car is all new, most of its engines are familiar and receive tweaks to improve power and efficiency.

We drove the 1.25-litre petrol (81bhp), 1.4-litre diesel and 1.6-litre petrol Zetec-S.

The 1.25-litre is available with 59bhp or 81bhp, accelerating from 0-62mph in 16.9 and 13.3 seconds and achieving 52.3mpg and 49.5mpg respectively.

The 81bhp 1.25-litre version feels smooth and stays quiet at motorway speeds but needs to be worked fairly hard.

It’s hard to justify buying the slower 1.25-litre for driving out of town, but it gives the Fiesta its low entry price of £8,495, which will make it tempting for many buyers.

The 1.4-litre diesel has 67bhp and accelerates from 0-62mph in 14.9 seconds, so it’s no road-rocket, but more interestingly it achieves a highly impressive 67.2mpg.

This is the same fuel consumption as the more powerful 1.6-litre diesel, which has 89bhp and hits 0-62mph in 11.9 seconds.

For the moment, the most powerful and entertaining engine in the Fiesta line-up is a development of the 1.6-litre petrol found in the previous generation Zetec S.

Power is up to 118bhp and it’s the first model to creep under ten seconds in the dash from 0-62mph. Economy is still very good, with Ford claiming a 47.9mpg average consumption.

The exhaust gives a more sporting sound too, with extra bass at tick over and a pleasant rasp as the engine hits higher revs.

Both diesels emit 110g/km of carbon dioxide placing them in tax band B with an annual cost of £35.

Next year an Ecomotive diesel model will be launched with a version of the 1.6-litre diesel tuned for economy, with emissions of 98g/km and average fuel consumption expected to be more than 70mpg.

The all-important but often overlooked quality of feel when changing gear is amazingly sweet, the next gear engaging with a delicate flick of the wrist.

‘Downsizers’ should have everything they need – gone are the days of heater controls and a radio being all-the-mod-cons in a supermini.

The basic Studio model gets a CD player, electric mirrors, central locking and airbags.

Step up to Style trim to get body-coloured trim, electric windows and remote locking. Style+ adds a Quickclear heated windscreen.

Zetec trim comes with 15-inch alloy wheels, front fog lamps, leather steering wheel and aesthetic interior lighting.

Zetec-S buyers get stiffened suspension, 16-inch alloys, sports seats and front and rear spoilers.

The range-topping Titanium spec adds climate control, tinted glass, cruise control, automatic headlamps and power folding mirrors and takes the place of the Ghia trim of the current Fiesta.

An automatic gearbox will be available with the 1.4-litre petrol engine, making it available at a lower price point than the previous Fiesta’s 1.6-litre automatic.

Take all this into account and it’s clear there is a new leader in the supermini class, which will be more than able to accommodate drivers from the class above and enjoy strong sales to carry the Fiesta brand into the next decade.

Key Facts

Model tested: Ford Fiesta 1.25 82 Zetec 5-dr
On the road price: £11,595
Range price: £8,695 – £13,695
Date tested: October 2008
Road tester: Andy Goodwin