The Fiesta Mark II appeared towards the end of summer 1983 with a revised front end and interior, and a bootlid mirroring the swage lines from the sides of the car. The XR2 model was thoroughly updated with a larger bodykit. It also featured a 96 bhp (72 kW) 1.6 L CVH engine as previously seen in the Ford Escort XR3, and five-speed gearbox (also standard on the 1.3 L CVH models). The engine was replaced by a lean-burn variant in 1986 which featured a revised cylinder head and carburettor; it was significantly cleaner from an environmental viewpoint but was slightly less powerful as a result (95 bhp (71 kW)).
A truly "hot" Fiesta was never produced by the factory to avoid impacting on sales of performance Ford Escort variants but many aftermarket conversions were available, the best-known being that by the English firm Turbo Technics boosting power to a well documented 125 bhp (93 kW), which easily outclassed its "standard" rivals. Ford appreciated the high quality of this conversion and was keen to look after its customers: the installation was undertaken by approved fitting centres and all the warranties remained valid after.