Renault Twingo Extreme news - Twingoing cheap - 2008

Remember the baked bean price war in the 90s, when the cost of a can fell to mere pennies? Well, we're hoping for a similar battle in the city car sphere. 

Because when Fiat announced the pricing for its new 500 last year, we were pleasantly surprised that the entry-level model weighed in at just £7,900. 

But now Renault has gone and undercut the Italians by pricing the new base-spec Twingo Extreme at £7,500 - which, it notes pointedly, is a full £;400 cheaper than the Cinq.

For your cash, you get a 1.2-litre, 60bhp petrol engine and more kit than you might expect: remote central locking, electric windows and fog lights. We were rather hoping for window winders and a four-speed 'box. 

If you want to completely nullify the Twingo's cracking value, Renault will provide you with a bunch of 'personalisation exterior decals' - or stickers, as the rest of us call them - to chav up your city car. Union Jack door handles, St George wing badges... they're all there. Just say no, kids. 

We eagerly await an even-more-base spec 500 from Fiat, priced at a competitive 99p.