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The Ford Fiesta could return as a Volkswagen EV-based hatchback

For the thriving small EV market in Europe?
Ford Fiesta
PHOTO: Ford
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For what it’s worth, the Ford Fiesta was a global hit. Sure, it wasn’t perfect, but with over 22 million units made from 1976 to 2023, it was once of the most important cars that wore the Blue Oval.

Ford axed the Fiesta in 2023 as it shifted to making only crossovers, pickups, and SUVs. Sure, there’s still the Mustang, and select markets still have the Focus and Mondeo, but when it came to affordable subcompacts, Ford was well and truly out of the game.

photo of a 2011 ford fiesta

However, a recent report from the UK has suggested that the small hatchback could return. Not only that, it’s possible thanks to Ford’s connection with Volkswagen.

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Ford and Volkswagen have had a joint venture for quite some time already. If anything, the two automakers have been working together for over 35 years, particularly in the Latin America. More recently, the two got together to build commercial vehicles and electric vehicles for the global market.

Front quarter view of the electric Ford Capri 2025

This joint venture has resulted in the Ford Ranger and VW Amarok, Ford Transit/Tourneo and VW Transporter/Caravelle. Not only that, Ford has benefitted from Volkswagen’s EV platform as the European market Ford Explorer uses the VW ID.4 underpinnings, while the revived Capri is based on the VW ID.5.

So, where does the Ford Fiesta’s potential return slot in here? Speaking to British automotive publication Auto Express, Volkswagen’s head of sales and marketing, Martin Sander said they are exploring another tie-up with Ford for a small electric hatchback.

Front quarter image of the Volkswagen ID.2all concept

The executive cited that the cooperation between them and Ford have been ‘very, very, very successful’ and ‘[did] not want to rule out that there are future opportunities here to share technology again.’

And here’s another important bit, Sander was once the general manager for Ford of Europe’s EV division. Coming full circle, perhaps?

Rear quarter view of the Volkswagen ID.2all concept

That said, Sander’s words are within the realm of possibility. Volkswagen is just about ready to roll out an affordable subcompact EV hatchback in the form of the ID.2. and an even smaller model called the ID.1. The ID.2 is about the size of the average subcompact hatchback, so it should be a solid foundation for the Fiesta’s electrified comeback.

It won’t be without its challenges, though. Ford has admitted that turning a profit in the A-segment and B-segment has become more difficult, but the economies of scale might make the Fiesta’s return feasible. At the same time, a slew of automakers have been coming up with subcompact EV hatchbacks, a market that Ford appears to want to enter.

2025 BYD Seagull review

Case in point, there’s the Renault 5 e-Tech and the future Nissan Micra, both of which use the same platform. Meanwhile, you have Hyundai with the award-winning Casper EV, also known as the Inster, as well as Peugeot with the e-208. And let’s not forget that Chinese automakers such as BYD making waves worldwide with products like the Seagull and Dolphin.

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PHOTO: Ford
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