Manchester United suffered arguably the lowest point of their domestic season as they lost 3-1 at Manchester City's Eastlands Stadium.
United's performance - which leaves them 13 points adrift of leaders Chelsea who play tailenders Sunderland on Sunday - was marred by an awful debut for French international fullback Patrice Evra, appalling defending in general and the sending-off of Cristiano Ronaldo.
Portugal winger Ronaldo was shown a straight red card by referee Steve Bennett in the 66th minute after launching a dangerous, studs-up challenge on former United striker Andrew Cole in frustration at being refused a free-kick after an earlier challenge by Stephen Jordan.
Such indiscipline was typical of a United display which saw them lose to goals from Trevor Sinclair, Darius Vassell and, in injury-time, substitute Robbie Fowler, with Ruud van Nistelrooy's 18th goal of the season giving them only brief hope at 2-1.
City moved up into eighth place, above Blackburn Rovers. But Rovers can regain their former position against Bolton at Ewood Park later Saturday.
It was a much-needed win for Stuart Pearce's side and afterwards the former England full-back hailed his team's return to form.
"We had taken one point out of the previous 12 and to face Manchester United when we were a bit low on confidence and put in a performance like that, I am really pleased for the players. They got everything they deserved today," Pearce said.
"I have always had confidence in our players but, when the chips are down and you're playing a United team on song, it's a case of can your players stand up and say 'you're not rolling me over today'....they did that and they deserve the victory," he also told Sky Sports.
The 145th Manchester derby opened in uninspired fashion as the two teams felt each other out but that state of affairs altered dramatically just after the half-hour mark.
Joey Barton's cross was headed clear by Gary Neville but Stephen Ireland capitalized on uncertain defending to thread the ball through for Sinclair to finish from ten yards.
United appealed for an offside, with television replays suggesting they may have had a case when Barton's initial cross had come over.
David James preserved City's lead by saving with his legs as Wayne Rooney collected a Ronaldo pass and bore down on goal.
But City's second, eight minutes after their first, again highlighted United's awful defending, Evra's in particular.
A long kick from James was easily headed on by Sinclair, outjumping Evra, and a deft touch by Cole played both United central defenders out of the game, permitting Vassell the opportunity to turn and convert from six yards.
United's plight was demonstrated by an incident towards half-time.
Rooney was cautioned for dissent after a prolonged complaint to Bennett over a foul he felt he should have been awarded.
Then, after the whistle sounded, Neville remonstrated with his team mate over the stupidity of the caution, earning a shove from Rooney in return.
By then Ferguson had seen enough of his new signing Evra, who arrived from Monaco in a 5.5 million pounds deal this week, ending his debut after 45 minutes and bringing on Alan Smith for the second-half.
But initial signs were that the switch would not bring about any change in United's fortunes.
Ronaldo's low left-foot shot was easily smothered by James at the foot of his post, Rooney shot just wide from the edge of the area after a flick from Ryan Giggs and Ronaldo missed the target.
Finally, after Ronaldo's dismissal, van Nistelrooy gave United hope as he collected Giggs's cross and shrugged off Sun Jihai before slotting the ball through the defender's legs and in at the near post.
City though had little to worry about for the remainder of the game.
Indeed, in the fourth minute of injury-time, Fowler eased any lingering worries, slotting home a pass from Vassell as City converted a four-against-two break in the United area.
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