Ford has revealed that the decision to kill of the iconic Fiesta was down to production capacity. Ford Model E boss Martin Sander has said that the hatchback was dropped because Ford is focusing on new electric cars, with a large $2 billion investment in new EVs. Production space was needed at the company’s Cologne factory in Germany.

Martin Sander spoke to Autocar a few days ago and said that Ford “needed the space in the factory” in Cologne and that it was “not one we did light-heartedly, but we have to do something.”

Ford hasn’t said anything concrete regarding if the Fiesta nameplate would return, but it is not that likely – although Sander did say that any such plans, wouldn’t be ruled out completely. One of the smallest EVs Ford will be offering will be the upcoming Puma, which is due to have an all-electric model announced soon. In the last few years, Ford has dropped a lot of its legacy nameplates, including the Ka, Mondeo, S-Max, Galaxy and then in 2025, the Ford Focus will be retired too.

Ford has been partnering up with Volkswagen to produce new electric vehicles, using the new VW MEB platform and a new shared initiative for commercial vehicles, which has already seen the likes of the new Ford E-Transit Custom, VW ID. Buzz, Ford Ranger and new VW Amarok. A new Ford crossover will be on sale by the end of 2023 which will be based on the VW MEB platform and will be built in Cologne.

The new Ford Model E division has lofty aims. It hopes to sell 600,000 electric cars per year in Europe by 2026. All Ford showrooms will offer only electric models by 2030 too.