JUST over three decades ago Ford introduced a new model called the Fiesta - it went on to become Britain's best-selling car with 3.4 million owners.

So the arrival next month of the sixth generation Fiesta is a significant moment for both motorists and under pressure Ford dealers.

The new Fiesta (which becomes a global car when it goes on sale in the USA in 2010), arrives at a difficult time for car makers with falling sales and an economic squeeze - but it could just be the antidote to the credit crunch as it's not only cheaper than the outgoing model, it's also more efficient, cleaner, better looking and from the driver's point of view a much better handling vehicle.

In comes more youthful and stylish panel work for both the three- and five-door versions with an emphasis on aerodynamics and functionality which breaks away from the recent rather bland Fiesta heritage.

The finished product is very close to the Verve concept car which was seen last year and attracted a lot of praise.

Most distinctive is the strong waistline that rises from the bold front wheel arches through the door handles (the rear handles fitted higher than the front) to the rounded rear haunches.

At the front the prominent features are the family trapezoidal grille with large lower section and large central Ford oval badge, deep creases on the bonnet, swept back headlamps and huge shallow raked windscreen.

In silhouette the coupe like roofline is emphasised by the kick-up in the C pillar while Sport versions get a roof spoiler.

Finishing everything off is a generous, wide and deep boot, the biggest yet on a Fiesta at 295 litres.

Inside the New Fiesta, Ford promises more passenger accommodation, although the low roof line makes it snug for getting in and out, especially in the case of the three door versions, but still leaving more than enough space for two six footers to sit one behind the other.

The deep, good quality plastic finished dashboard sweeps across the front with the windscreen falling a long way ahead in the cockpit style cabin which almost gives it a mini MPV sensation.

Stand out feature is the dramatic winged centre console (supposedly based on a mobile phone design) which is packed with controls that can be a bit intimidating at first and will take time to get used to.

Among the minor complaints is that the small digital odometer is difficult to read set as it is between the circular analogue dials and the random mix of materials and finishes isn't entirely convincing, but everything is ergonomically placed and simple to use.

With a total of 36 combinations available the specification list starts with the entry level Studio grade, which despite a price incentive is not expected to take many sales but does come equipped with a CD player, central locking and powered door mirrors.

Next up, Style versions will be the second best sellers and gain: body coloured bumpers; mirrors and door handles; integrated four speaker sound system; electric front windows and remote central locking. Style + adds in a Quicklear heated windscreen and air conditioning.

Zetec versions will be the most popular and should take around a third of all sales and be the most popular, upping the specification with: 15 inch alloy wheels; front fog lamps; leather steering wheel; chrome grille and interior lighting.

Zetec S (which is badged as Sport elsewhere) sits on larger 16inch alloy wheels and boasts a deeper front bumper, wide side mouldings, a rear spoiler and sports tuned suspension.

Topping the range are the Titanium models which add luxury touches such as: electronic temperature control; privacy glass; cruise control; automatic headlamps; automatic windscreen wipers and power folding door mirrors.

Under the clamshell bonnet, the engine options are all upgrades, providing a good spread of power units with four 16 valve Duratec petrol and two Duratorq TDCi diesel alternatives.

Ford has concentrated on refining its tried and trusted engine so that they are now more economic and produce fewer emissions.

The petrol units will take close to three-quarters of all sales and normally use a positive five speed manual gearbox.

Starter unit is the 60bhp 1.25 litre which is 25 per cent faster than before getting to 62mpg in under 17 seconds and topping out of 94mph which is OK for around town but a bit disappointing on the open road. It is joined by an 82bhp version, which cuts the sprint time to a more reasonable 13.3 seconds and adds five miles an hour to the top speed.

The 95bhp 1.4 litre petrol is anticipated to be the best seller. It cuts the dash time to 12.2 seconds and raises the maximum to 109mph. An automatic transmission becomes available with this engine in early 2009.

Pick of the bunch is the responsive 118bhp 1.6 litre petrol, which however does need to be revved quite high to really get the best out of it.

In this form (20bhp more than before) this provides the sporting option with 62mph coming up in 10.8 seconds and a maximum of 120mph while still returning a quoted 47.9mpg.

This is going to be the top version as Ford says there are no plans for an ST version as on the current model.

Diesel engine sales have never been big in this sector and with the fuel price differential could actually be lower than anticipated.

The 1.4 litre TDCi, rated at 67bhp, will get to 62mph in 14.9 seconds and top out at and 101mph while the 1.6 litre diesel (shared with the Focus) at 89bhp gives it a sprint time of 11.9 seconds and a 109mph maximum.

All the diesels are rated at 110g/km emissions.

What could sway some of the sales back in favour of diesel is the appearance from the end of the year of Econetic versions (which offer 98 kg emissions) and use a 1.6 litre Duratorq TDCi producing 10 per cent less CO2 and a combined fuel consumption figure of 76.3mpg.

One of the best features of the new Fiesta is the chassis, which has been specifically tuned for European roads and driving tastes.

It is constructed of five different types of steel (55 per cent of which is high strength steel) and arrives 10 per cent stiffer than the outgoing model while at the same time Ford has managed to shave 45 kg off the finished weight.

The basic platform is already being used on the new Mazda 2 so we know its good and it follows in the wake of the Focus and Mondeo which are already among the best handling cars in their categories proving that Ford really does know how to set-up a car.

Extra supports for the MacPherson strut front and twist bean rear suspension assist the surprisingly lithe and agile handling which reacts well over difficult surfaces and maintains an even, reassuring balance.

New Fiesta is particularly impressive under pressure where it holds high speed cornering without any squeal of the tyres or loss of grip.

Fluid electric steering, using brushless motors, responds rapidly and at the same time helps reduce the turning circle and improve fuel economy.

Priced starting at £8,695, which is actually £155 less than the outgoing model, Fiesta rises to £13,695 for the five door Titanium 1.6 TDCi. Ownership costs will also be aided by higher residual value predictions (nearly 8 per cent up and worth about £1,000) and significantly lower insurance groupings.

New Fiesta is a very likeable, expressive and dynamic vehicle and should easily cement Ford's leadership in the small car sector.