Ford Storms Fun-Car Market With Ka

The Ford Ka is 21 centimetres (seven inches) shorter than Ford's current smallest car, the big-selling Fiesta.

Ford said its marketing studies showed public enthusiasm for the name. A spokesman said Ka means vitality in ancient Egyptian.

The Ka will be shown to the public for the first time at the Paris car show early next month. It will go on sale in Europe later in the month, Ford said in a statement.

Ford declined to reveal the capital cost of the project, but Ford has said that the plant which will make the Ka, in Valencia, Spain, cost $201 million to build.

 

And just because it is a minicar, don't expect prices to be tiny. It will be affordable but not cheap, McGraw Hill's automotive researcher DRI analyst Maher said.

Ford said the Ka will not represent the bare essentials of motoring. It will have the space, features and equipment normally associated with larger cars.

The Ka, which will have a 1.3 litre engine, was designed and developed in just over two years. Ford declined to state its price.

Financial Times adds: The European market for small, predominantly urban fun cars, such as the Renault Twingo and Fiat Cinquecento, moved from niche to mainstream yesterday with the launch of the Ka.

Designed to slot in below the Fiesta in Ford's five-model European-built range, the Ka represents a significant vote of confidence by a leading manufacturer in a market segment once dismissed by many carmakers as irrelevant. Instead of having a limited appeal among smart urbanites or financially strapped singles, sales of the Twingo and the Cinquecento have exceeded expectations.

Fiat has sold almost 680,000 Polish-built Cinquecentos since the launch in 1992. Sales of the Twingo, which is built in France and Spain, have reached about 800,000 since its introduction in March 1993.

The success of both models has prompted other carmakers to re-examine the small hatchback segment. Volkswagen is expected to launch a shortened version of its highly successful Polo hatchback, probably under its Spanish Seat brand, by the end of next year.

General Motors is thought to be working on a smaller version of its Corsa compact hatchback to be powered by an innovative three cylinder engine.

Although the Ka is appreciably bigger than the Cinquecento and has a much larger 1,300cc engine than both the Fiat and Renault models, it is expected to compete for much the same customers in we stern Europe. Ford says it has no immediate plans to sell the Ka outside Europe.

Production of the new vehicle is expected to reach about 200,000 units a year at full tilt.

The vehicle's striking design reflects the new strategy of many carmakers of producing distinctive vehicles to create greater brand awareness. Ford is also stressing the new car's environmental friendliness through its compact dimensions, fuel economy and the fact that many parts will be recyclable.

Such features have contributed to the image of mini-cars such as the Twingo and the Cinquecento as examples of style over substance.

Renault admits that a relatively large proportion of Twingo sales have been of high-margin option-packed luxury models.

Although available, like the Twingo, with a relatively large number of up-market options, such as air-conditioning and a compact disc player to ease the frustrations of urban driving, Ford says its new vehicle also offers cheap but practical long-distance transportation.

However, both the Twingo and the Cinquecento have also been bought in large numbers by budget buyers.