PEUGEOT is known globally for its diesel technology and in Australia has offered a diesel in its lineup since 1978. But lately you could be forgiven for thinking that Volkswagen had commandeered the whole turbo-diesel story, as it blitzed with its superb TDI variants in the Polo, Golf, Jetta and Passat. However, the French have fired back, introducing a silky six-speed tiptronic automatic to the 307 range, essentially taken from the 407 sedan and coupe. It is Peugeot’s answer to the DSG gearbox in the VW Golf and is a worthy addition to the expanded 307 range. The HDi six-speed auto is the ace up Peugeot’s sleeve.

307 hatch
Released: December 2001
Ended: October 2005
Family Tree: 307The 307 marked a bold styling departure from the venerable 306 range. It was more upright, adopting something of an MPV look and it offered a roomier interior courtesy of a longer wheelbase and wider cabin and substantial improved safety levels over the previous UK-sourced 306. At launch, three engines were available, a lacklustre 1.6-litre, better performing 2.0-litre and superbly frugal 2.0-litre turbo-diesel. A two-door XSi arrived in March 2002 with the same 2.0-litre engine as the XSE five-door hatch. Initial build quality was an issue and the suspension tune too veered away from the absolute suppleness of the 306.
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