Renault Twingo

British drivers have been forced to hang on for longer than expected, after Renault boss Carlos Ghosn rejected the new Twingo and told company engineers to make it more cost effective and less like the original hatchback.

The result is a car insiders describe as "fairly funky, but cheaper to build", so a starting price of around £7,500 is likely when it reaches UK dealers. Introducing a 120bhp performance variant is part of Renault's strategy of adding GT-badged models across its range - a warm Mégane GT will arrive by the end of this year and a 2.0-litre Clio GT is due in 2007. The latter is designed to rival Ford's Fiesta ST, and will be powered by a new 140bhp variable valve-timing engine developed with partner Nissan. The new Mégane is rumoured to have a 170bhp 2.0-litre turbo. While the original Twingo was left-hand-drive only with a single bodystyle, one engine and a basic specification, the new baby will come in RHD and is likely to offer a 1.5-litre dCi diesel and the firm's Quickshift semi-automatic gearbox.

There will be a variety of interiors, too, from bright, eye-catching fabrics to an upmarket Initiale specification, with leather trim and air-conditioning.

Lessons on providing a relatively cheap and cheerful car without compromising quality have been learned from Renault's Dacia Logan, which is due here in 2009 from less than £7,000.