The third generation of the Mondeo was introduced at the 2007 Geneva Motor Show and previewed as a hatchback in the 007 James Bond film, Casino Royale.
The Mondeo was built on the same platform as the Mazda 6/Atenza, and it was not sold in the U.S., like the first generation where the Fusion model filled that segment. The vehicle was available as a four-door sedan, five-door hatchback, and a station-wagon. The hatchback was the first to be unveiled.

Featuring a new design language, named kinetic-design, the Mondeo represented Ford’s biggest car on the European market. Its front grille left the rounded sides of the trapezoidal shape from its predecessor and adopted sharper, straight lines. On the other hand, the headlights were swept on the sides, with a bigger interior side. A wider lower grille was installed on the apron. The station wagon version featured a longer roofline and, in the back, vertically mounted taillights.

Inside, the Mondeo offered a roomy interior due to its long, 2.85 m (112.2 in) wheelbase. The designers installed a new dashboard with two analog dials and a central TFT screen. For the infotainment system, Ford installed a new unit that included Bluetooth connectivity and sat-nav in the top-spec version. In terms of practicality, the Mondeo Station wagon offered even more interior room than its predecessor. It reached 1728 liters (61 cu-ft) with the rear seats folded.

Under the hood, Ford installed a wide choice of gasoline or diesel engines. They ranged from a mere 1.6-liter 115 hp turbodiesel up to a 2.0-liter turbocharged gasoline unit that offered 240 hp. Most versions were mated to a 6-speed manual, while a 6-speed automatic was on the options list.