Peugeot has always had a fairly loyal, if relatively small following in Australia, but when it launched the 306 in 1994, it made its mark in a much bigger way.
Here was a small European hatch that not only offered practicality and affordability, it was, unlike most of its Japanese and South Korean rivals at the time, also a great car to drive.
Such was its appeal that over 12,500 Australians have driven away in the car since.
However in the intervening years, new products such as the Holden Astra have moved the goalposts and dulled the lustre of the 306 somewhat. So, with the arrival of its 307 replacement, the question is: can Peugeot regain its ground?
There is no doubt that the car does have the ability to stand apart from the crowd, at least as far as its form goes. Like the new Honda Civic, the maker has been toying around with the traditional hatch form and produced a car that draws ever closer to becoming a mini people mover. The force driving this trend is the need to package a small car with greater space and versatility and the end result is a taller vehicle with a higher driving position.
There is no question that Peugeot has delivered on the space front. The well finished cabin offers plenty of headroom and legroom for four adult occupants with the spaciousness accentuated by the enormous windscreen and glass areas, which also make for very good visibility.
There is also an abundance of storage areas with huge door bins on all four doors, plenty of cupholders and small cubbies and a boot capacity that expands via a 60/40 split rear seat back to 1328 litres.
But what about the drive experience?
Three engines are on offer with the new entry level 1.6 engine we tested starting the range. Despite being smaller than the 306's 1.8, power and torque are only slightly lower - power is down just 4 kiloWatts to 80kW at 5750rpm while torque is down 11Newton metres to 147Nm at 3900rpm.
It is the latter figure that is most obvious on the road as the relatively high torque peak means the car does need to be wound up a bit to get any serious movement, struggling a little on long hills and requiring plenty of consideration before overtaking.
Over about 3000rpm, though, it pulls delightfully through to about 6500rpm, in a smooth, quiet and refined manner.
On the handling front, it may not be as sharp as its predecessor but still corners flat, has plenty of grip and the steering is direct with reasonable feedback.
The payoff for the dulled handling edge is a very comfortable ride over most surfaces with a compliant well-sorted suspension. The comfort of the ride is complemented by very low levels of noise which adds to pleasant ambience and enables greater appreciation of the superb CD sound system.
The audio system is just part of a long list of standard equipment that includes six airbags, anti-lock brakes, climate control, power windows and mirrors and remote central locking.
Although it may have lost some of the edge of the 306 it replaced, the 307 is still a good driver's car while the dramatic redesign had vastly improved the interior space and practicality of the car. And with a starting price of $25,990 at launch for the car we tested, it offers good value too.
7 DAY TEST,
BOTTOM LINE: Extra space and diesel power make this a stylish, practical and economical small wagon
Two years after the 307 was originally launched in Australia CarPoint decided it was time to revisit the lineup, which has now been expanded to include a tin-top convertible 307 CC and Touring version.
As the name suggests, the Touring is a small wagon with the wheelbase of the 307 hatch having been extended by 100mm and the rear overhang lengthened by 117mm to give more cargo space and a car that now totals 4420mm in length. It is available with a 2.0-litre petrol engine but for our test we chose Peugeot' s acclaimed HDi direct injection turbo-diesel.
Peugeot has been one of the proponents of diesel passenger cars in Australia and for good reason. Its latest generation of engines are smooth, quiet and refined and offer great fuel economy and low emissions.
While diesel has traditionally been assigned to trucks and 4WDs, the 2.0-litre diesel engine in the 307 is eminently suitable for around town commuting. With a maximum torque or 205Nm peaking at 1750rpm, the engine offers plenty of urge off the line and is responsive at suburban speeds.
Mated to a well defined if slightly notchy five speed manual, judicious shifting through second and third keeps you well up with the urban traffic flow both on the freeway and suburban streets.
At the same time its 2000-odd rpm spread of torque means it's flexible enough to drive lazily with the engine quite capable of pulling comfortably from 60km at about 1500rpm in 4th gear without needing a shift down.
It is only out on the open road when overtaking that the engine reveals the downside of its diesel nature, as its low maximum power of 66kW peaks at 4000rpm and the engine tends to run out of breath about 4500rpm.
Peugeot has always managed to deliver a good ride and handling compromise and with the 307 Touring, it hasn' t lost that ability. The extra length in the wheelbase has probably even made the car a bit more stable and improved ride comfort over the hatch - which was good to start with - without losing any of its dynamic ability. Body roll is minimal and the variable dampers fitted to the rear end help maintain excellent control regardless of the weight being transported.
The extra length inside adds about 200 litres of cargo space and it is very well finished and complements the storage cubbies that abound throughout the cabin. It doesn' t do the car' s aesthetic appeal any harm either.
For a premium of $1700 over the equivalent hatch, the extra space is good value and unlike most makers, Peugeot doesn' t charge a premium for a diesel donk.
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