SlashGear    •   7 min read

Why Was The Fiesta Discontinued By Ford?

WHAT'S THE STORY?

A Ford Fiesta ST parked at a scenic overlook at sunset

Back in July 2023, the last Ford Fiesta rolled off its production line in Ford's Cologne factory in Germany, which marked the end to an almost five decades of continuous production of the small Ford hatchback. According to a 2025 report by Top Gear, the Ford Fiesta remains the UK's all-time top-selling car, with over 4.1 million units sold at its peak. It is also the best-selling used car in the UK, which makes Ford's decision to discontinue it all the more surprising.

The answer to this question

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lies within the shifting dynamics of the auto industry, driven by profit margins, sales charts, eco standards, and electrification. The Ford Fiesta, a car that has graced European roads for many generations, has not seen a successor, and chances are that it's going to stay that way, especially since the Ford Puma took over as the UK's best-selling new car in 2024.

The automotive industry has been undergoing a seismic shift in recent years, prompting many automakers to rethink their product catalogs. Market demand has increasingly shifted toward SUVs and crossovers, while legacy brands now face growing competition from newer carmakers. In such conditions, certain models inevitably face discontinuation. Even though the Fiesta made a lasting cultural mark in countries like the UK, Ford ultimately pulled the plug — here's why.

Read more: 6 Of The Worst-Looking Fords Ever Made

What Killed The Ford Fiesta

Three Ford Fiesta hatchbacks parked outdoors

One of the key reasons Ford discontinued the Fiesta was the need to repurpose its Cologne factory for the production of new high-volume electric vehicles. Speaking to Autoblog in 2022, Martin Sander, Ford's general manager of Ford Model E Europe, said the decision was "not one we did light-heartedly" and explained that "we decided to build our first high-volume electric vehicle here in Cologne." This is in line with Ford's ambitious EV transition plan for Europe, which includes a billion-dollar investment in its Cologne plant for electric vehicle production.

It's also worth noting that the UK's Zero Emission Vehicle (ZEV) mandate and evolving Corporate Average Fuel Economy (CAFE) standards have made it increasingly difficult for Ford to continue selling the Fiesta. To sell internal combustion vehicles, Ford needs to offset them by selling a growing share of EVs — 22% in 2024, rising to 28% in 2025, and 80% by 2030. For high-volume, affordable models like the Ford Fiesta, hitting those ratios becomes a challenge, especially when profit margins are already thin and the costs associated with electric vehicle R&D are anything but.

This combination pushed Ford toward cost-cutting measures that ultimately influenced the demise of the Fiesta. Lastly, even though the Ford Fiesta has been a best-seller in many parts of Europe, one can not deny the fact that its sales were steadily declining after 2015.

Could The Ford Fiesta Make A Comeback?

A Ford Fiesta ST driving through a mountain pass

Since most automakers follow long-term product strategies and face strict emissions and regulatory constraints, the chances of the Ford Fiesta returning are slim, though not entirely impossible. Ford could revive the Fiesta as an EV, but that would have to make sense within its broader electrification and general product strategy. However, the VW ID.2 closely resembles the Fiesta in size and packaging, and it could eventually pave the way for the Fiesta's revival, since the ongoing partnership between Ford and VW is set to produce many rebadged EVs in the coming years.

Moreover, a 2024 report by Bloomberg states that Ford has made a U-turn on its EV product strategy for Europe due to the increased threat of cheap Chinese EVs. The alleged target for Ford is a $25,000 compact EV, which will later be followed by more compact EVs. Given how Ford used the Ford Mustang name to position the Mustang Mach-E, it could do the same with the Fiesta, since many parts of the European market (especially the UK) continue to value the Fiesta's legacy.

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