Production of the most fuel efficiency version of the Ford Fiesta ever gets underway at the company’s  Cologne Assembly plant in Germany. This ECOnetic-badged Fiesta is powered by the  1.6-litre Duratorq TDCi diesel, which Ford says will do 3.3l/100km (86mpg) and delivers CO2 emissions of 87g/km. It will also deliver  95PS and 205Nm of torque.

The engine is a 1.6 liter four-cylinder unit. The reason it is so efficient is largely due to the great number of fuel saving technologies fitted to it. It has Auto-Start-Stop, Smart Regenerative Charging, Eco Mode and shift indicator light.Add to that a bespoke engine calibration and optimised gear ratios.

What’s more the car itself is optimized for lower consumption with  lower suspension, undershield and wheel deflectors as well as low-rolling resistance tyres.

The frugal Fiesta will be available in three and five-door versions and a variety of trim levels, depending on market. By the end of 2012, half of the Fords sold in Europe will sport the ECOnetic bade and its features. That will increase to two-thirds in 2013. Ford then is right on track in its quest to reduce CO2 emissions of its cars by 30 percent between 2006 and 2020.