The original Ford Ka was in production for a staggering 12 years from 1996 with a third of its 1.4 million sales coming in Britain.

This, the second generation Ford Ka, takes the original’s funky, chic nature and adds the 21st century Ford twist. It’s certainly grown up, but has it lost the fun-loving dynamics, reminiscent of the original Mini?

The new Ford Ka has big boots to fill. The old car was loved for its affordability, dependability and wheel-on-each corner fun through the bends. It was better than any cheap urban kickabout had any right to be.

It raised the bar for an entertaining city car, and its fans won’t expect anything less than another groundbreaking machine.

The Ka certainly looks every inch the urban fashionista’s dream, with similar front end styling to the recently-launched Ford Fiesta and a rear that’s a direct nod to the old car. The execution of Ford’s kinetic design language isn’t quite as effective as that of the Fiesta, but certainly falls into the cute category.

And although our test route around Hertfordshire didn’t include much of the inner city or town centre driving many Kas will find themselves battling, it’s quick to establish that it is exceptionally manoeuvrable, with great visibility and a tight turning circle. Short front and rear overhangs mean parking should be a cinch.

On more flowing roads, the Ford Ka reveals itself as a competent and entertaining car, with predicable handling, sharp steering and firm – but compliant – suspension.

Built alongside the Fiat 500

The Ford Ka is based on the Fiat 500, with which it shares a production line in Poland, but Ford make much of the fact it has rear anti-roll bars for improved cornering and the rear suspension has been softened by 30 per cent. This might make the Ka sound as though it will wallow, rather than carve, its way through bends, but it actually makes the Ka feel more sure-footed than the stiffly sprung 500.

And although the Ford Ka is more likely to be found in 30mph zones, its handling was sorted at Germany’s Nurburgring race track. Something which is evident with a reprogrammed power steering setup for improved feel.

View our Ford Ka slide show

Two engines are available; a 68bhp 1.2-litre petrol and a 74bhp 1.3 diesel – the first oil-burner fitted in a Ka.

The 1.2-litre petrol is expected to make up around 97 per cent of sales, and is eager to rev, although gets a little thrashy when pushed hard. It offers enough urge to make it suitably nippy around town, and can cope with motorway cruising.

We also tested the 1.3-litre diesel, which offers a noticeable amount of extra pulling power. Second gear hills in the petrol could be climbed in fourth in the diesel.

Both engines are as refined as you’d expect – this is a tiny city car, not an executive cruiser, and can propel the Ka with all the speed urban drivers really need. Both engines can reach 62mph in 13.1 seconds, and help the Ka to a maximum speed just shy of 100mph.

Ultra-low running costs

The car’s trump card is its running costs. The petrol engine emits 119g/km of CO2, and the diesel just 112g/km meaning a road tax bill of just £35. Insurance is easy on the wallet too, with ratings between one and three.

One criticism of the aging original Ka was the interior. Age has been kind, but the game has moved on.

The cabin is one of the funkiest in its class, with bold colours and chunky, tactile touch points. While the Fiat 500 is a masterclass in retro cool, the Ka is an excellent example of 21st century city car thinking. A range of vibrant upholstery is available, and a customisation programme is offered, with a choice of three looks; racy Grand Prix, tribal Tattoo and modernist Digital Art.

it also has a number of useful storage spaces, and a boot 24 per cent larger than the previous car.

Ford is proud of its equipment levels, with the entry-level Studio model featuring ABS with Electronic Brakeforce Distribution, two airbags and body-coloured bumpers.

The Style adds electrically-operated and heated mirrors, electric front windows and remote central locking, while Style+ also receives air-con and a heated windscreen.

Ford predicts the Zetec range topper will be the most popular model, and adds front fog lamps and alloy wheels.

So is the new Ford Ka capable of filling the original’s shoes? We think so. It retains the fun factor, but adds the refinement, dynamics and safety and equipment levels you’d expect from a car in 2009.

Key facts

Model tested: Ford Ka 1.2 Style+, Ford Ka 1.3 TDCi Zetec
On the road price: £8,806, £9,980
Price range: £7,827 – £9,980
Date tested: January 2009
Road tester: Stuart Milne