Ford revives Fiesta

Firm tosses out ‘Verve’ to use ’70s nameplate for new subcompact

Christine Tierney / The Detroit News

What’s in a name? That was the big question as Ford Motor Co. executives debated what to call the stylish new subcompact they will start rolling out later this year.

Ford called the concept version of the small car the Verve. But in the end, the Dearborn automaker stuck with one of its historic nameplates and called the new car the Fiesta.

While that name may evoke the Fiesta econo-box that was sold briefly in the United States more than 20 years ago, many young consumers are likely to be more aware of the current, snappy-looking Fiesta sold in huge numbers in Europe, Ford executives say.

Given the car’s importance in the European market, Ford will unveil the new Fiesta at the Geneva motor show next month.

"With the all-new Fiesta, we want to create a world standard for small car quality, design and comfort in a vehicle that is as exciting to drive as it is to look at," Ford CEO Alan Mulally said.

"We believe this model will attract a whole new generation of small car buyers, whether they are in Britain, Spain, China or California," he said in a statement.

Developed in Europe, the Fiesta is the first major model to emerge from Ford’s new global product development process.

Through that process, Ford aims to speed up development times and cut costs by tapping its far-flung resources and eliminating the duplication of efforts.

General Motors Corp. has introduced a similar approach and draws on the resources of overseas affiliates, such as GM Daewoo Auto & Technology, to produce small cars affordably.

"In most of the world, the subcompact, or B, segment is very significant," said Erich Merkle, vice president of forecasting at IRN Inc. in Grand Rapids.

Merkle saw the new Fiesta on Thursday and was impressed by how much it resembles the Verve concept, which has been well-received at recent auto shows. "I think the Fiesta will make them much more competitive," he said.

Young won’t recall name

Auto consultants wondered about Ford’s decision to go with the name Fiesta instead of Verve. "The name Verve is good. It has attitude," said Daniel Gorrell of Tustin, Calif.-based AutoStratagem. "Fiesta sounds a little lightweight."

But he said the target audience for the car — entry-level buyers in their 20s — will not associate the new model with the Fiesta sold in the United States from 1978 to 1980.

"I don’t think you’ll get a negative reaction from young people," said Wesley Brown, partner at Los Angeles-based research and consulting firm Iceology. "You’ll probably get a negative reaction from people who remember the Fiesta that did get sold here but the reality is, a vehicle like this isn’t going to be targeted to people 60 and above."

Global marketing chief Jim Farley recommended that Ford call the new car Fiesta. Mulally’s inclination also is to retain nameplates, and he revived the Taurus and Sable names after he became CEO.

Ford executives cite the approach of Japan’s leading carmakers, which keep the same nameplates over generations. As the vehicles improve, the nameplate is strengthened.

Ford will initially sell the Fiesta in Europe. Three- and five-door hatchbacks will hit showrooms there in the fall. Ford will roll out regionally adapted versions of the car to other markets over the next two years.

The car will go on sale in the United States in 2010, filling a crucial gap in Ford’s U.S. lineup. The Dearborn automaker is absent from the fast-growing subcompact segment, dominated by Asian cars such as the Nissan Versa, Toyota Yaris, Kia Spectra and Honda Fit. Subcompact sales grew 20 percent last year, while the overall U.S. auto market was down slightly.

The model destined for U.S. car buyers will be built in Mexico, while Fiestas sold in Europe will be built at Ford plants in Cologne, Germany, and Valencia, Spain.

Ford introduced the Fiesta in 1976, three years after the first big oil shock jolted automakers into developing more fuel-efficient cars. Globally, Ford had sold more than 12 million Fiestas.