Welcome to the baby hot hatch revolution! While performance fans have had a feast of high-powered superminis in recent months, we can reveal the new kids on the block that are ready to rip up the rule book.

With two of Europe’s top manufacturers behind the move, the results are going to be spectacular. The new Fiat 500 Abarth and stunning Ford Ka ST – two fast and affordable city cars – are shaping up to offer giant-killing performance. But while both share the same mission, they will attack the performance market from very different angles.

Drivers won’t have to wait long to get behind the wheel, either. First to arrive will be the 500 Abarth. With a wider track to improve handling, the Fiat will have a more muscular look than the standard model. The front end gets a new bumper design, while lower side skirts, inspired by the classic 595 Abarth, add to its appeal.

And as with its high-performance Grande Punto stablemate, the range-topping 500 won’t wear Fiat badges. Instead, it will come with the Abarth logo on the front and rear.

Inside, the cabin will get an equally striking makeover, with a high level of standard equipment and bucket seats. A dashboard-mounted gearlever will easily lend itself to sporty driving, offering snappy changes.

The hot 500 won’t be short on power, either. Under the bonnet will be Fiat’s new 1.4-litre turbocharged engine. With up to 150bhp, this will give the three-door an impressive turn of speed. Drivers can expect a 0-60mph time of around seven seconds and sharp responses to match.

Prices for the new 500 have yet to be announced, but one thing’s for sure – it won’t be a budget hatchback. Aiming to offer a smaller alternative to the MINI, even basic models are likely to cost around £11,000. The Abarth variant is expected to be pitched at the heart of the performance supermini market, with a MINI Cooper-rivalling price of around £15,500.

However, there will be a cheaper way to get your hands on a great-handling city car. Ford’s new Ka is based on the same platform as the 500, but it won’t share the Italian model’s upmarket aspirations. Instead, the next-generation baby will be a direct replacement for the current low-cost runabout.

That doesn’t mean every version will be basic, though, with the popular Sportka set to be succeeded by a thrilling new ST model. Our exclusive gives a flavour of what to expect, with trademark cues, including racing stripes, a deep front spoiler and large diameter alloy wheels, all setting it apart from basic variants.

Upholding Ford’s reputation for fine chassis dynamics, the newcomer will aim to offer a class-leading ride and entertaining handling. The ST model will get firmer suspension to provide even sharper responses, while company engineers will soon take to the road to fine-tune the dampers and hone the steering.

It’s not yet known which engines will power Ford’s new baby, but some are tipped to be shared with the Fiat. However, the ST is unlikely to offer more than 120bhp to avoid stealing sales from hot hatch versions of the next-generation Fiesta.

Even though it’s set to be produced alongside the 500 at the Tychy factory in Poland, the new Ka will share no visual parts with its Italian cousin.

The standard Fiat 500 will go on sale in the UK early next year, with the Abarth version due soon after. Buyers wanting their baby hot hatch with a Ford badge will have to be patient, as the new Ka isn’t expected to be on sale until later in 2008. Even so, whichever model you choose, it’s bound to be worth waiting for.