The main problem was overheating, I was told that this was common with VW alloy engines such as the 1.3 unit fitted to the Derby.
The headlights were also terribly weak - a friend that also owned a Derby suffered the same problem, he fitted uprated bulbs, although I don't think these were legal.
During the final year of ownership I used the car relatively little and reliability suffered as a result.
For a small car it was quite good over longish distances due to an engine that was reasonably lively and very good front seats. I regularly made a trip from Birmingham to Plymouth (UK) without problems either from the car or from my body.
The controls all worked well, precisely and with a degree of solidity not present in other small cars I have driven. It was also a decent drive along country roads being agile and responsive to the throttle, although you wouldn't win any hill climbs in one!
Room in, and access to, the back seats is restrictive, but the boot was a decent size and it was OK on petrol.
I own a Derby '78, 1.3l engine for 10 years as my second car. never had a problem with engine overheating. this may ocure only if the ignition timing or carburettor jetting is wrong. engine runs strong, sprints sharper even others MPI cars, (Eg Nexia Saloon) due to 60 bhp/850 kg. i am actually seeking for a sport/racing camshaft for 1.3l HH series engine.e-mail : arutaretti@yahoo.com.