An all-new third generation Clio was unveiled in 2005. It uses a platform co-developed with Nissan (which Renault has a share in) that is shared with the Renault Modus, the current Nissan Micra and the Nissan Note. It is considerably larger and 130kg (287lb) heavier as well as more expensive than the Clio II, and at nearly 4000mm in length has almost outgrown the supermini class. This was the result of a decision to move the Clio upmarket. It also brings the trademark “Renault Card” keyless immobiliser to the Clio for the first time. The new Clio achieved a 5-star EuroNCAP safety rating, joining the rest of Renault’s family at the maximum safety rating (with the exception of Kangoo and Twingo). Sales began throughout Europe in October 2005. It was voted European Car of the Year 2006, and was considered by the judges to be the car which will set the benchmark for quality, safety and style for a car in this class.

In June 2006 the sales of the third generation Clio Renault Sport started in France for the price of €23000. The Clio Renault Sport is equipped with a new naturally aspirated 16-valve 2.0L engine based on the earlier version used in the second generation Clio Renaultsport and a 6-speed gearbox. The engine develops 197PS (145kW) at 7250rpm. The top speed is 215km/h (134mph) and 0-100km/h takes 6.9 seconds.

Renault exhibited a Hi-Flex Clio Mk II with a 1.6 L 16-valve engine at the 2006 Paris International Agricultural Show. This vehicle, which addresses the Brazilian market (where this engine is available in the Clio II, the third generation not being sold there), features Renault-developed flex-fuel technology, with a highly versatile engine that can run on fuel containing a blend of gasoline and ethanol in any proportion (0% to 100% of either).

An estate version, the Sport Tourer, was unveiled in March 2007. At the same time, Renault replaced the 1.4L atmospheric engine with a new turbocharged 1.2 TCE version, with 101PS (74kW) and 145N·m (107ft·lbf) of maximum torque.

According to Auto Express magazine in the UK, a restyled Clio III will go on sale in early 2009. It will be a fully face-lifted version of the current model, with better quality materials used in the interior and will be better equipped than the current model.

Renault sold 4 million units of the original Clio and 4.5 million units of Clio II, so this model is definitely the most important car to the French car maker. Clio III was developed in just 28 months, a record for Renault. This is made possible by using Nissan’s computer simulation technique and the use of the group’s B-platform which has already given birth to Nissan March (Micra), Cube and Renault Modus. In particular, the Clio and Modus share 20% common components to reduce purchasing costs. However, they are built at different locations – the Modus at Spain while the Clio III at France (Flins) and Turkey (Bursa).

The new Clio has a pleasing exterior design. It does not look as radical and imposing as Megane II. Instead, it looks softer, cleaner yet not lack of style. This new styling direction has been previewed by concept car Wind and Fluence. There are several body style: five-door hatch, 3-door hatch, 4-door sedan (to be built in Turkey exclusively) and a wide-track Renault Sport 3-door hot hatch. The latter will be assembled at the ex-Alpine plant at Dieppe.

Clio III has grown a lot from its predecessor. At 3986 mm long, 1707 mm wide and 1496 mm tall, it is easily the biggest car of the B-segment. Only the recently launched Fiat Grande Punto can compare with it. Its 2575mm wheelbase is just 3 mm shorter than Volkswagen Golf, which belongs to a class above. These extra dimensions give the Clio a spacious cabin. Although it is not exactly in the league of Golf, it can comfortably carry four adults up to six feet tall.

The cabin feels light and airy because of large window area, especially if the optional panoramic glass roof is selected. As in most other Renaults, the cabin is extensively trimmed with soft materials and the light color promotes a warm ambience in French traditions. It feels more expensive than the competition – Volkswagen included. There are also many upmarket equipments, such as keyless entry, button engine start, climate control, adaptive cruise control, active cornering headlamps and a lot of safety features. The new Clio should achieve the top 5-star rating for Euro NCAP crash test, considering the remarkable track record of Renault. This is another strong selling point nowadays.

Unfortunately, the upgraded space, quality and safety have a side effect on Clio III: it gained 150 kilograms from its predecessor. Even compare with the similarly sized Fiat Grande Punto, it is still some 100 kg heavier. As a result, the Clio III no longer feels energetic on the road. It offers 3 petrol engines (75hp 1149cc 16V, 98hp 1398cc 16V and 112hp 1598cc 16V VVT). None of them are new development and none of them match the performance image established by Renault’s winning F1 team. These engines are quite sweet and eager, but they don’t cope well with the hefty Clio. Naturally, the smallest 1.2 engine is easily forgettable for its sluggish performance. Even the 1.6-litre engine, helped with continuous intake variable valve timing, cannot deliver real excitement. In fact, it is not much faster than the 1.4-litre engine.

In the diesel side, Renault offers a 1.5-litre 8-valve iron-block engine in 3 states of tune: the cheapest one employs the first generation common-rail injection technology and a fixed turbocharger to produce 68 hp; the middle engine upgraded to second generation common-rail injection (with 1600 bar injection pressure instead of 1350 bar) to deliver 86 hp. The most powerful one also employs a larger turbocharger with variable geometry turbine to generate 106 horsepower and as much as 177 lbft of torque. Unfortunately, its power curve is peaky, producing too little punch below 2000 rpm and therefore less flexible than the 86 hp version, which is pick of the bunch. With 1.2 ton of weight to pull, neither diesel engines can claim itself quick. Well, at least they are refined and quiet.

Like other B-platform cars, Clio’s chassis is rather conventional. Suspensions are MacPherson strut up front and torsion-beam axle at the rear. Their tuning bias strongly towards the safe side, having no intention to inspire keen drivers. Like the Clio II, its steering is assisted by pure electric, no wonder it refuses to communicate. However, the car’s long wheelbase does provide a grown-up ride quality, while wider tracks improves cornering stability. This means driving the Clio III is easy and comfortable, but not very interesting.

In the new Clio, we see Renault’s new strategy is to go the upmarket route, offering more comfort, quality and safety than mainstream competitors and asking for a slight price premium. In other words, the same strategy as Volkswagen used to adopt (it backed off recently with the Fox). It many ways the migration to higher market status is successful, but in the eyes of car enthusiasts, the continue decline of driving fun from the original Clio to Clio II and then Clio III has nothing to applaud. Let’s pray for the forthcoming Renault Sport Clio…