I think it is a very valid point, and I do think there will be some initial and then minor residual negative connotation for that reason. Most people will put a negative connotation with the car because of the blue oval on the front, though.
That brings me to a good counter point- Ford has a proven track record in Europe and gets more respect there (all the US Ford haters whine that Europe gets the "good Fords"), but now we will have a European Fiesta... and by keeping the name, we can say, "Hey, the Fiesta is a legend in Europe, the #2 selling car in ALL of Europe, and gets serious respect." That's my plan on a counter-point, at least.
That brings me to a good counter point- Ford has a proven track record in Europe and gets more respect there (all the US Ford haters whine that Europe gets the "good Fords"), but now we will have a European Fiesta... and by keeping the name, we can say, "Hey, the Fiesta is a legend in Europe, the #2 selling car in ALL of Europe, and gets serious respect." That's my plan on a counter-point, at least.