Ford will launch its next generation Fiesta in March 2008. The new Fiesta it is supposed to be the most spectacular looking small car the firm has ever built.

Next Fiesta will be based on Ford's latest B2xx small car platform, and the model is currently being engineered alongside the upcoming Mazda 2. The Fiesta will be longer and wider than the current car, and offer a more spacious cabin. Safety features will include front, side and head airbags, as well as the latest electronic brake force distribution and traction control systems.

The car will be powered by a five-strong engine line-up. Petrol-powered cars will come with a range of 1.3, 1.6 and 1.8-litre Duratec SCi engines, which feature direct injection for improved fuel economy. Two diesels will be available - a 1.4 and a 1.6-litre TDCi, which have been developed with Peugeot. It's thought both oil-burning units will employ the latest pollution-reducing particulate filters.

Also an ST-badged hot hatch will be unveiled. This is expected to be powered by a 170bhp 1.6-litre turbo­charged petrol engine, which features the same SCi technology.

The B2xx platform will also be used in the US for the first time with a car called the Ecosport.