Ford Fiesta XR2 1981

The Fiesta was initially available in Europe with the Valencia 957 cc (58.4 cu in) I4 (high compression and low compression options), and 1,117 cc (68.2 cu in) engines and in Base, Popular, Popular Plus, L, GL (1978 onward), Ghia and S trim, as well as a van. The US Mark I Fiesta was built in Cologne, West Germany, but to slightly different specifications; US models were Base, Decor, Sport, and Ghia, the Ghia having the highest level of trim. These trim levels changed very little in the Fiesta's three-year run in the US, from 1978 to 1980. All US models featured the more powerful 1,596 cc (97.4 cu in) engine, (which was the older "Crossflow" version of the Kent, rather than the Valencia) fitted with a catalytic converter and air pump to satisfy strict Californian emission regulations), energy-absorbing bumpers, side-marker lamps, round sealed-beam headlamps, improved crash dynamics and fuel system integrity as well as optional air conditioning (a/c was not available in Europe). In the US market, the Ford Escort replaced both the Fiesta and the compact Pinto in 1981, competing with the Chevrolet Chevette and Chevrolet Cavalier.

A sporting derivative (1.3 L Supersport) was offered in Europe for the 1980 model year, using the 1.3 L (79 cu in) Kent Crossflow engine, effectively to test the market for the similar XR2 introduced a year later, which featured a 1.6 L version of the same engine. Black plastic trim was added to the exterior and interior. The small square headlights were replaced with larger circular ones, with the front indicators being moved into the bumper to accommodate the change.

For the 1979 auto show season, Ford in conjunction with its Ghia Operations in Turin, Italy, produced the Ford Fiesta Tuareg off-road car. It was touted in press materials as "a concept vehicle designed and equipped for practical, off-road recreational use."

Minor revisions appeared across the range in late 1981, with larger bumpers to meet crash worthiness regulations and other small improvements in a bid to maintain showroom appeal ahead of the forthcoming second generation.