The Hotdog was a concept sports car developed by MGA Developments Limited, a design and engineering firm based in Allesley, Coventry, that had been founded in 1979 as a model-making company before establishing itself as a pioneer of computer-aided design. By the late 1980s the firm employed around 260 people, including 40 designers and 35 CAD/CAM specialists, and carried out development work for numerous automobile manufacturers beyond the United Kingdom. After an earlier demonstration model called the Vega, based on the Toyota MR2, MGA boss Mike Gibbs decided in 1989 to present a show car to the public, conceived as a small sports car in the spirit of the 1958 Austin-Healey Sprite.
Design work began under MGA design chief Peter Horbury as a mock-up before evolving into a fully driveable prototype described by its promoters as ready for production. The concept was intended to be affordable, with an estimated price of between 5,000 and 8,000 pounds sterling, aimed at buyers up to 30 years old.
Technically the Hotdog was based on the then-new Ford Fiesta XR2i, using its 1.6-litre, 110 hp front-wheel-drive engine producing 138 Nm of torque, along with its unmodified underpinnings and 2445 mm wheelbase. The plastic-bodied open two-door roadster had no windscreen, only a low racing screen, and seated three, with a third seat set between the two front sports seats. Front styling echoed Ford design cues, including a Ford badge.