By 1983, the 'jelly-mould' Sierra had replaced the boxy old Cortina (to much consternation from conservatives, Luddites and traditionalists), the first of the front-wheel-drive Escorts was going strong and the shape of cars was changing fast. The Fiesta Mk 2 looked like a substantial progression from the Mk 1, although under the curvier, more aerodynamic shell there were few major developments. A fifth gear was optional on the 1100 and standard on the 1300, and overall specification and noise insulation was improved on all models. Ford claims that the reworked cabin of the Mk 2 followed 'the latest developments in ergonomics', and the previously feeble heating and ventilation system was upgraded.
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With the discontinuation of the 40 bhp, low-compression 950, budget-conscious motorists were drawn to a new variant in the range: the 54 bhp, 1.6-litre diesel, which promised up to 74 mpg. This was slow, noisy and generally unrefined by the standards of modern diesel superminis, but it was the first of its kind and sold well in conjunction with the completely stripped-out Popular Plus trim level. The Mk 2 1600 XR2 joined the range in April 1984, and although it didn't have the adept handling of its main rival, the Peugeot 205GTI, it found its way onto many a late-night cruise through provincial market towns, loved by boy racers, tuners and what we would now call the Max Power brigade.
Another first for Ford with the Fiesta Mk 2 was the CTX version, which debuted a stepless continuously-variable automatic transmission system. Like the diesel, it was crude by modern standards, but a notable advance over previous CVTs such as the rubber-band Daf Variomatic system.
By now, the supermini market was getting more competitive, with every mainstream manufacturer rushing to get in on the act. Although the Fiesta continued to sell well, by 1989 the range was showing its age against more modern rivals such as the Peugeot 205, Fiat Uno, revised Renault 5 and Citroen AX. Austin Rover had the Metro, Vauxhall the Nova, and cheap, well-specified, small Japanese cars - Civic, Micra, Starlet - were also making an impact. In April '89, 'Autocar & Motor' pointed to 'the huge discounts on offer from Ford dealers anxious to give their elderly car some kind of competitive edge'. By now, the supermini market was intensely competitive: cue the 1989 makeover that spawned the Fiesta Mk 3.
