The Ford Fiesta Mk2 was the second generation of the Ford Fiesta supermini built by Ford Europe. Originally introduced in 1983, it was a mild facelift of the original car, and it was available in 3-door hatchback and panel van styles. It was replaced by the heavily updated Fiesta Mk3 for 1989.
The Ford Fiesta Mk2 appeared towards the end of summer 1983, with a revised front end and interior; the most notable change involved the new wraparound headlights. The engine compartment was also wider, so as to accommodate a five-speed transmission and new engines. The front track accordingly increased by 33 mm (1.3 in) (the rear track remained as on the Mk1), while the brakes and steering were also altered. At launch, the Mk2 Fiesta was only available with the familiar 957cc and 1117cc Kent Crossflow-based "Valencia" engine options, although they now featured variable venturi carburettors for improved fuel consumption. The more bulbous bonnet line of the Mk2 was created largely due to the need to package the taller Ford CVH engine, a 1.3 L version of which followed in 1984, and this model also featured a five-speed manual transmission for the first time. The 1.0 was only offered with the four-speed at first, while the five-speed was available as an option in the 1.1.
Two other versions of the Mk2 Fiesta appeared in 1984; there was an updated XR2 model with a 1.6–L version of the CVH engine: the second generation Fiesta XR2 model came with a larger bodykit. It also featured a 96 bhp (72 kW) 1.6 L CVH engine as previously seen in the Ford Escort XR3, and a five-speed manual gearbox.
There was also a new 1.6 L diesel engined version of the Fiesta, making full advantage of the now wider engine compartment. Diesel power units in this market segment were still unusual, and commentators found that the impressive fuel economy of the diesel powered Fiesta came at the expense of a power unit that was noisy and rough. Even in West Germany, a market traditionally receptive to diesel powered passenger cars, the petrol/gasoline powered Fiesta was still outselling the diesel version by more than four to one in 1988.
The XR2's engine was replaced by a lean-burn variant in November 1986 which featured a revised cylinder head and carburettor; this reduced emissions, but resulted in a small drop in power (although Ford still claimed the same maximum power output). At this point the manufacturer also took the opportunity to offer the 5-speed manual transmission, already standard on the 1.3 L model, as an option with the upgraded 1.1 L car.
The 1.3–L CVH was replaced by a 1.4–L lean burn version of the same power unit for 1986, whilst the other engines were modified in order to use unleaded petrol. In February 1986 all models received the 40 litre fuel tank, previously reserved for the XR2 model, increasing fuel capacity and range by 17%.
In May 1987, Ford added the new CTX, incorporating continuously variable transmission, to the range, although it was only offered with the 1.1 engine, and relatively few of these Fiesta CTXs were produced.
The Mk2 Fiesta, facing competition from the Vauxhall Nova and Austin Metro, was one of the UK's top superminis. In its best-ever year, 1987, over 150,000 Fiesta models were sold in the UK, though it finished second in the sales charts to the Ford Escort.
In West Germany, then Europe's largest national car market, the Fiesta managed to outsell the Volkswagen Polo in 1984, 1985 and again in 1989, while the Polo narrowly outsold the Fiesta each year between 1986 and 1988. Throughout this period, West German sales of the Opel Corsa trailed those of both the Fiesta and the Polo.
By April 1989, when a new generation of Fiesta was launched, combined production and sales of the first two generations of Fiesta, produced between 1976 and 1989, had exceeded 4.5 million units.