New Pug launched Down Under

Peugeot has officially replaced its top-selling but general unloved 307. On sale in Australia officially this month and the first '8 generation' Peugeot to make it Down Under, the 308 is gunning for the likes of Volkswagen's Golf and will be a key part of the brand's push to sell more than 10,000 vehicles Down Under in 2008.

Priced from $25,990, it also promises to deliver a return to form for the French marque in terms of onroad dynamics.

Three trim levels of 308 will be offered initially with the choice of turbo and naturally-aspirated petrol engines as well as the maker's excellent HDI turbodiesels, in two capacities.

A choice of automatic and manual gearboxes are offered across the model range.

The 308 shares its petrol powerplants with the 207. Developed jointly by BMW and Peugeot's parent company PSA, the DOHC variable-valve timed 1.6-litre unit develops 88kW/160Nm in naturally aspirated form and is offered in both 103kW and 110kW/240Nm twin-scroll turbocharged direct-injected variants.

These engines are variously matched to five-speed manual and four-speed automatic gearboxes.

The 308's base turbodiesel engine is also a 1.6-litre unit rated at 80kW and a potent 260Nm thanks to an 'overboost' mode.

The top of the range oiler remains PSA's excellent 2.0-litre HDi DPFS engine. Available matched to both six-speed manual and six-speed automatic gearboxes, the powerplant is rated at 100kW/340Nm in the 308 yet returns around 5.5L/100km fuel economy in the 308.

The 308 model range kicks off with the 88kW manual petrol XS at $25,990. An auto version is offered at a $2000 premium.

Next up the range is the manual-only 80kW XS HDi turbodiesel. Its pricing is carried over from the equivalent 307 model at $29,990.

The naturally-aspirated petrol XSE is $30,390 (auto only) with the 110kW XSE Turbo the cheapest petrol turbo model at $30,590 for the manual version -- add $2000 for auto. The most expensive petrol model is the auto-only XTE which features a unique 103kW version of the petrol turbo engine.

The XSE and XTE turbodiesels boast the impressive 2.0-litre HDi engine. The former is offered in manual and auto variants at $33,590 and $35,790 respectively. The most expensive 308, at least until the CC and three-door GTi versions arrive, is the auto-only XTE HDi at $37,990.

A wagon body style will arrive Down Under mid-year, Peugeot says.

All levels of 308 hatch get six airbags (including curtain bags) as standard, with stability control also standard on the XSE and XTE grades -- and an affordable $450 option on the XS. Canny early buyers of 308s might be able to take advantage of the fact Peugeot Australia has order a "high percentage" of XS models with stability control incorporated.

The 308 earned five stars in Euro NCAP testing. It is also one of only a handful of cars in the Australian market that offer a seventh (knee) airbag. This feature is offered as a $250 option on XSE and XTE grade.

Features like dual-zone climate control air, cruise control, remote access and six-speaker MP3 compatible audio are standard across the range. All grades above XS get additional goodies such as auto wipers and headlamps, rear seat skiport and alloy wheels.

First impressions of the 308 are that the car addresses many of the criticism of the outgoing 307. Not only does the car exhibit a definable step up in interior quality, it is also a return to the more subtle and wieldy handling of Peugeots past. Quiet and deceptively quick, it looks like the Golf club has a fight on its hands.

Look out for the Carsales Network's full launch review of the new 308 range soon.

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