PRICES of the Ford Fiesta are being cut by up to £1,250 as part of a move to maintain the car's popularity against newer competitors in the supermini sector. Specification upgrades are also being introduced in a realignment package aimed at boosting the showroom value of the market leader's best-selling range.

The 1.25-litre Ghia version, which costs £11,300 after the biggest reduction, gets alloy wheels and rear head restraints as standard, and air conditioning, along with a 'Quickclear' heated windscreen, is being introduced in the specification of the popular LX line-up, despite a £350 drop in price to £9,700. A Ford spokesman said: 'We're aware of the competition and decided to act in time for the peak sales season. We have lifted equipment packaging after finding that a high proportion of customers have been choosing higher-level models.'

He denied that the realignment was run-out action on the car, which was launched in its current guise in 1995 and is due to be replaced at the end of the year. At £9,200, the Zetec is also £350 cheaper but gets fresh metallic paintwork and leather trim for the steering wheel and gearshift. Another £350 comes off the price of the Finesse, which now includes power steering and body- coloured bumpers and side mouldings as standard at £8,200.