The vast majority of major car manufacturers have taken a severe hit during the credit crunch with sales targets adjusted and revenue down. As a consequence there has been a rethink across the sector – and Ford is putting its faith in two new small car ranges.

The new Ford Ka made its bow at the Paris Motor Show, joining the Fiesta in a range that has been completely renewed since 2006. Ford Europe chairman John Fleming believes that market conditions are “terrible” in the UK with sales running one-third down on 2007 but the two new small cars could make a significant difference.

“Having two new small cars will help, but it’s still very tough out there,” he said.

The new Ford Ka, which was built at Fiat’s plant in Tychy Poland, shares a platform with the highly praised Fiat 500 but has no exterior panels in common with the mini-car.

Its statistics are impressive too with the introduction of a diesel for the first time. There is a 1.3 litre 75bhp Duratoq unit along with a 1.2 litre 69bhp Duratec petrol unit – both of which return carbon dioxide (CO2) emissions below 120g/km.

Visitors to the Paris Motor Show can also enjoy a number of ‘specials’ including a gold-plated Bond Ka and a trio of football-themed cars to celebrate Ford’s sponsorship of the Champions League.