22 May 2001: Ford is to relaunch its babycar Ka (above) as a complete brand within the company's group, as part of a strategy to meet the challenge of BMW's new Mini and the slow-growing but persistent DaimlerChrysler Smart (below).

At least four variants of the new Ka will be produced, the first of which will be the StreetKa, to be assembled in Turin by Pininfarina.

Other versions will include SportsKa, CityKa and diesel derivatives. Like the current car was with the outgoing Fiesta, all will be based on the platform of the new Ford Fiesta due out later this year.

A new distribution network of Ka outlets may be located in city centres around Europe, which has been done with the Smart range. New variants of Smart are to be built in a joint venture with Mitsubishi Motors.

Fiat also plans to expand its small car production, including a new car to rival the Ka and the Smart, which will be built in Poland. BB