Following successful negotiations with the once radical Greater São Paulo’s São Bernardo do Campo metalworkers union,  Ford is back spending money on its oldest plant in Brazil. This town saw the birth of the Brazilian auto industry back in November 1956.

The redesigned Fiesta was launched here in October 2011, imported from Mexico, in top trim hatchback and saloon forms, the latter since dropped but due to return in the second half of 2013. Now building it in São Bernardo do Campo is planned from 2014.

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As expected, the updated new Fiesta is fully aligned with the European versions and production started just six months later. It will arrive here in May but there will ne no one-litre engine to begin with (the I3 unit will come later).

The compact hatchback launches the flex-fuel 1.5-litre/91.5 in³ double overhead camshaft, variable valve timing, 113bhp engine (on ethanol) in the more affordable versions and 1.6-litre/97.6 in³/128 bhp for the higher specs, also burning biofuel and/or petrol. Both have the market’s top specific power output and are fitted with a cold starting system that dispenses with the petrol start aid when filled with ethanol. Ford included fuel economy as a design highlight.

Fuel mileage city/motorway with 128bhp and manual shifter: 21.9 mpg (imperial) and 27.4 mpg (ethanol) and 31.5 mpg and 38.5 mpg (petrol). On 113 bhp: 21.6 mpg and 26.6 mpg (ethanol) and 29.9 mpg and 37.9 mpg (petrol), respectively. On average, the most powerful engine is more thrifty, in contrast to the past.

Retail prices starts at BRL38,990/US$19,500, a shade below strong competitors, and climb to BRL54,990/$27,200 for a top line Titanium version that includes seven airbags and twin clutch automated six-speed gearbox.

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Active safety includes electronic stability and traction control on higher-displacement versions.

The older, lower priced Fiesta Rocam with one-litre/61 in³ engine continues to be available for now.