Ford Fiesta 1.25 LX

On paper, it seems to be a significant improvement. The 1.3 produces 69bhp, while the 1.25 delivers 74bhp. The result is a quicker 0-60mph time of 14.5 seconds - that's 1.5 seconds faster than the outgoing model - and a maximum speed of 101mph.

However, when driving in normal conditions, the extra turn of speed is not as noticeable as it should be. Although the 1.3 was no trailblazer, the new 1.25 feels even more sluggish and underpowered at low revs, and has to be worked hard to enable the Fiesta to keep up with city traffic.

The principal problem is how the torque is delivered. Even though the latest unit has slightly more of it - up from 109Nm to 110Nm - it's now produced at 4,000rpm, whereas the two valves-per-cylinder 1.3-litre engine reached its peak pulling power at a more relaxed 2,600rpm. While the 1.25 felt perfectly at home in the previous Fiesta, it seems to struggle with the additional weight of the new model. Thankfully, the sweet-sounding 16v unit is both smooth and free-revving, which takes some of the pain out of holding on to all the gears. But keeping it on the boil soon becomes a chore.

If you choose not to unlock all that performance by thrashing the engine, the entry-level Fiesta is now even more frugal. In the combined cycle, the 1.25-litre model returns 45.6mpg, which is a five per cent improvement over the 1.3. Emissions are virtually identical, with the 1.25 producing 148g/km of CO2, placing it in the lowest company car tax bracket for 2003/2004. As the 1.3-litre Duratec engine dates back to the Sixties, it's no wonder Ford is keen to bring in the more modern powerplant, which was a top seller in the previous-generation Fiesta. Meanwhile, the 1.3 will continue to power the Ka.

Prices for the restructured Fiesta range are largely unchanged. An entry-level Finesse model costs ΂£7,995 with the 1.25 engine, while the LX three-door driven here is yours for ΂£8,600.

Compare that price to those of its supermini opponents and the Ford is still excellent value for money. Arch-rival Vauxhall's Corsa GLS is available with a 1.2-litre 16-valve powerplant for ΂£400 more than the Fiesta, although it does offer gutsier performance. It's a similar story with Volkswagen's 65bhp 1.2-litre-engined Polo S, which comes with a list price of ΂£9,410.