Blast From The Past As XR2 Returns

The newcomer will be the first car to be badged simply 'ST'. Early indications were that Ford would call the hot Fiesta the ST150, in line with the ST170 and ST220 performance versions of the Focus and Mondeo. But the decision was taken to drop the numbers from the name to avoid confusion - and it suggests the hot hatch will be available with more than one power output.

At launch, however, the car will have the 150bhp 2.0-litre engine originally predicted. The Duratec unit is based on that of the Focus ST170, but has been detuned slightly to reduce torque steer in the lighter Fiesta bodyshell. Official performance figures will be revealed closer to the car's on-sale date, expected in October, but sources suggest the ST will accelerate from 0-60mph in less than eight seconds and have a top speed of near 130mph.

Ford insiders say the handling set-up is still being finalised, but the firm's testers have been using a Focus RS as a benchmark when driving the car at the Lommel proving ground in Belgium. Thanks to its agile chassis, the Fiesta's lap times are said to be nearly on a par with those of the rally-bred Focus, so it should deliver real on-road thrills.

Externally, the ST can be distinguished from lesser Fiestas thanks to its wide mesh grille, integrated foglamps, chunky bumpers and discreet side skirts. Smart 17-inch 11-spoke alloys will be fitted as standard, while a small roof spoiler completes the package.

The car takes its styling partially from the Fiesta Rallye concept unveiled at the 2002 British Motor Show. A competition-ready version of the Junior World Rally Championship model will share stand space alongside the ST in Geneva.

Inside, the newcomer boasts half-leather sports seats embroidered with ST logos, a leather-bound steering wheel and metal foot pedals, along with aluminium-effect finishing on the door handles and gearknob.

Derrick Kuzak, Ford of Europe's vice president for product development, told us: "The ST puts us back into the heartland of small car performance, in a great-to-drive package that's accessible to younger enthusiasts." That means he's hoping it will attract buyers who might otherwise consider a Renaultsport Clio 182 or Peugeot 206 GTi. Although prices have yet to be revealed, our sources have hinted that the Fiesta ST will cost around ΂£13,000 when it goes on sale.

Meanwhile, Ford has said that it's making all of its diesel engines compliant with Euro IV emissions rules. Cleaner versions of the Fusion TDCi and C-MAX TDCi will be introduced later in the year, while the units fitted to oil-burning Fiestas and Mondeos are already built in line with the stricter regulations, to which all makers must adhere by 2006.