Ford is busy with small cars at present – the new Fiesta will be revealed at the Geneva Motor Show in March – and the firm is also working on a replacement for the Ka city car.

The new Ka is a joint venture with Fiat and will share technology with the new retro-styled 500.

Due to be unveiled at the Paris Motor Show next September, the new Ka will go on sale in the UK in January 2009 with a choice of 1.3-litre diesel or 1.4-litre petrol engines.

The styling will continue the edgy theme of the original, although the interior will be of a higher grade than at present.