Peugeot 307 XSE HDi 2006 Review

What we liked
>> Slick, smooth auto
>> Outstanding ride/handling balance
>> Effective wagon packaging

Not so much
>> High entry price
>> Long front overhang
>> No left footrest

OVERVIEW
For a shape launched in 2001, the Peugeot 307 is still travelling well. It received the new Peugeot corporate nose in a late-2005 mid-life facelift which certainly has helped to keep the look current.

The latest change however is under the skin and comes at a time when interest in diesel-fuelled passenger cars has never been greater. Enter the new six-speed auto 307 XSE HDi -- available in both hatch and Touring (wagon) form, it is an important addition to the local Pug range.

Previously the XSE HDi has only been available as a six-speed manual. And because the fitment of Peugeot's premium six-speed auto (sourced from its 607 and 407 range) is so specific to this level and engine, the cheaper XS HDi with 1.6-litre diesel continues as a five-speed manual only while the petrol 307 models retain their choice of five-speed manual and four-speed Tiptronic-style auto.

The latest 307 look can polarize buyers but it is distinctive and links the model with the more prestigious 407. The only drawback for some rural drivers is the potential for the relatively deep lower nose section and long overhang to catch in dips or crossovers. With Peugeot suggesting this new auto diesel range (especially the Touring wagon) as an effective and more frugal substitute for a larger work wagon or SUV such as a Subaru Forester or Honda CR-V, this issue may warrant closer investigation for some buyers.

That said, Peugeot has been careful to maintain ride height in the new diesel auto models by upgrading spring rates to counter the extra powerplant mass. The Touring wagon is also higher and slighty wider and rides on a wheelbase that is a full 100mm longer than the Hatch.

The rush to get the new automatic to market has been driven by several dramatic sales trends. When 85 per cent of all small car buyers insist on automatic transmission, Peugeot could not afford to miss out on the changing market. Compared to the same period last year, private diesel sales until August 2006 were up by 117 per cent and up by 220 per cent in August alone compared to August 2005. For non-private sales, this year to date figure escalates to 191 per cent compared to last year with a 330 per cent August rise over the same month last year.

Not surprisingly, Peugeot expects this to translate into healthy resale as the trend works down into the used market.

It must be noted that this trend has not been driven solely by an overnight panic over fuel prices. Earlier this year, new Australian requirements for diesel fuel radically changed the fuel content allowing a 20 year advance in diesel technology to occur virtually overnight. The Australian diesel market is currently going through a catch-up phase.

Fuel pricing and dirty diesel pumps remain an issue but Peugeot and other industry bodies are working together to clean up delivery sites. The general consensus is that once private diesel usage reaches a critical mass, fuel outlets will be forced to compete on price, convenience and cleanliness as they currently do with petrol. Peugeot is hoping to speed up that process by working with a supply chain prepared to gain an edge in these areas.

FEATURES
When vehicles of the 307's size start from under $20,000 and Peugeot's own 307 range starts from $24,990, the standard equipment list for the $34,790 307 XSE HDi hatch and $36,490 Touring becomes more critical than most.  For the record, the new auto adds a full $2200 over the manual models.

There's also a $3000 premium over the equivalent petrol XSE auto – enough to pay for plenty of fuel and as such the resale factor has become important. Diesel engines and the engineering upgrades that must come with them are not cheap but if the vehicle holds its price premium through the used market, the extra cost is recoverable.

Specific XSE features include: automatic dipping centre mirror, aluminium finish transmission selector knob, leather-trimmed steering wheel, 16-inch alloy wheels, body colour side protection mouldings, automatic rain-sensing front wipers, automatic headlight system and headlight delay security function.

All of these build on the already well-equipped lower trim levels of the 307. Key 307 features include front and rear 12-volt power outlets, sunglasses holder, front seat storage drawers, trip computer, temperature and oil level gauges, air-conditioned glovebox, dual-zone climate control, cruise control, exterior temperature readout and steering wheel audio controls.

The XSE's  single CD Blaupunkt sound system is the same as the entry level and a little disappointing at the price even if the centre dash display is clever. The neat dash design, clear instrument graphics and soft feel finish of most dash and cabin fittings are a step above the miserable offerings in some current small cars.

The only option is an electric sliding glass sunroof at a reasonable $1500 while metallic paint is an unreasonable $700.

COMFORT
A current distinguisher between a cheap car and an expensive one is standard dual-zone climate control and the 307 has it. Tinted glass and a heat reflective windscreen are also useful with the acres of exposed cabin and glass. Forward and side vision is relatively good when the pillars are reasonably slender by today's standards and the cabin layout is uncluttered.

Electrically-heated exterior mirrors are noteworthy at this price as are the height and reach adjustable steering column, height adjustment on both front seats (even if there is no cushion tilt), sunvisor vanity lights and mirrors, pollen and odour filters and reading lights spread throughout the cabin. Several controls mounted on the driver's door instead of the centre console are an indicator that cost cutters have yet to totally rule at Peugeot.

Seats live up to the Peugeot reputation by balancing location and comfort levels to the usual standard and are perfect for big Aussies. There is no driver's left footrest but plenty of space to rest your left foot.

The Touring wagon is especially good in head and legroom for such a compact vehicle. Children will like the rear centre armrest with storage and drinks holders. Cloth trim is standard but there is no leather option which is an omission when so many buyers spending this sort of money now regard this as essential.

The ride and handling compromise for all Australian roads is one of the best for a European import and is responsible more than anything else for the luxurious, substantial feel in what is still a small and reasonably priced vehicle.

SAFETY
The French are usually among the market leaders in this area so the base 307 starts off well, to which the XSE HDi adds ESP (Electronic Stability Program) and Traction Control.

EuroNCAP testers have been impressed with the 307's strong safety structure especially side impact strength which they noted was very good for this type of vehicle. Overall, it rated four stars in overseas testing.

Standard safety features include: front and side airbags, full length curtain 'bags, ABS with electronic brake force distribution and emergency brake assist, side impact door padding, height-adjustable front seatbelts with pre-tensioning and force limiting, three-point rear seat belts for all seating positions, force-limiting outer rear seatbelts, tyre pressure sensors, automatic hazard light activation under emergency braking, luggage security net and head restraints for all occupants. 

MECHANICAL
It's in this area that Peugeot has gone it alone with some clever developments. The engine starts as a 1997cc four cylinder with a longer 88mm stroke than its 85mm bore, capped with a 16-valve head and a Garrett variable-geometry turbo. This clever turbo design changes its internal characteristics to reduce lag at low speeds while maximizing efficiency at higher engine speeds.

It delivers 100kW/4000rpm and a substantial 320Nm/2000rpm -- a torque figure that you would normally find in a 3.0-litre petrol V6 or larger. It also has an overboost function that boost torque temporarily to 340Nm/2000rpm in the four higher gears when under full load between 1750-3200rpm -- or in other words, exactly where you need it in a highway overtaking move.

The common rail, direct high-pressure fuel-injection is what makes these new engines so efficient. In this case, it is based on a special high-pressure pump driven off the exhaust camshaft.

As technology improves, the injectors in these systems can now operate at a pressure of 1600-2000 bar compared to 1300 only a few years ago. At these pressures, the atomization is very fine with smaller droplets for a more complete burn. Computers control exactly when the injectors open with their fine atomization and rapid response thanks to the Piezo-electric control heads. These advances change how a diesel operates.

Although the calibration of the electronic control systems is initially complex, the actual mechanical parts are still relatively simple.

Such fine control allows two pre-injections to control noise, two main injections for the right balance of power/emissions/fuel economy/torque and two post-injections to regenerate the FAP particle filter.

This system also eliminates the glowplug wait at start-up except under extreme cold. The engine will now operate optimally virtually from go.

Peugeot has its own ideas about a particle filter (which trap the carbon and other particulates). To keep the filter (which is mounted in the exhaust system) unclogged, the engine must generate a high-temperature, after-burn function to vaporize the trapped particles. This can require temperatures between 550-880 degrees Celsius otherwise the filter would clog every 1000-1500km.

To counter the high thermal loads and extra fuel consumption that this process would normally generate, Peugeot fits a storage tank of Eolys compound, a shot of which is added to the fuel automatically at each fill. This compound bonds with the particles and lowers the temperature at which they combust to as low as 450 degrees Celsius. The 3.5-litre tank has to be refilled every 120,000km at a cost of around $350 but Peugeot maintains it is a more cost effective process over this period than torching extra fuel to generate higher temperatures.

Given Peugeot has pushed out the timing belt interval to 180,000km, almost double that of rivals, that's some recompense. Routine servicing with the reduced particulate emissions should be on a par with a petrol engine. Unlike an increasing number of petrol engines, there are no expensive platinum-tipped spark plugs to replace.

The automatic transmission is the proven AM6 developed by Aisin AV within Peugeot design parameters and already seen in the 607 and 407, both heavier and more powerful models. It is a new-generation design with twin epicycloid gear trains for reduced weight and size compared to conventional four-speed designs.

There are two driving options: a self-adapting mode that responds to driving style or direct sequential manual control. The Tiptronic pattern requires the lever to be pulled towards the driver for downshifts, away for upshifts (in a market that is increasingly favouring the opposite direction including the VE Commodore and BF Falcon). As we have said earlier, the time is overdue for manufacturers to standardize this basic control action.

Combined fuel consumption figures are 6.7/6.9 lt/100km for the auto Hatch/Touring --  1.3lt/100km more than the manual. Usually it's the other way round as these new autos are normally more frugal than the manual. CarPoint's 7-day Test should reveal if this is a reflection of the test procedures or real world usage.

COMPETITORS
It depends on whether a hatch, sedan or wagon body style is critical to a final choice. The medium car segment is about to open up with several new diesel models including the Honda Accord Euro and Mazda6 if you must have a sedan, as well as Peugeot's own new 407 entry model at just over $40,000.

For the hatch buyer, there is a competent and cheaper Holden Astra CDTi rival which offers a six-speed auto option except the auto's lower power output places it somewhere behind the 307 XSE HDi.

The upper-level VW Golf Diesel 2.0 TDI Comfortline carries the same retail figure as its 307 rival with almost identical equipment and presentation. The main difference is VW's unique DSG transmission versus the 307's automatic. It is a distinction that can only be settled by more subjective judgements than available here including the 'snob' value of the respective badges.

There is also the Alfa Romeo 147 JTD as a manual-only under $40,000 while BMW and Audi rivals all quickly climb over $40,000.

The Touring wagon version of the 307 has no direct competition except the petrol-engined Mitsubishi Lancer, Toyota Corolla and Holden Astra wagons, all of which could match the 307 in function, if not finesse. The 307 Touring's $6-10,000 price premium pays for plenty of fuel so economics alone will not be enough to swing a decision either way.

The half-commercial, half-people mover VW Caddy Life 1.9 TDi is more flexible and practical at a substantial saving but its 77kW diesel engine will never be as spritely as the Peugeot.

There are persistent rumours that Ford will expand its local Focus range and a diesel and a wagon would be logical additions.

At only 1757mm wide, they are usefully more compact in tight surroundings without feeling tight inside. Turning circles of 10.8m (Hatch) and 10.98m (Touring) are smaller than several medium cars but nothing exceptional for their size. Yet the ease with which you can zip in and out of traffic and park in a tight spot soon raises questions about how much vehicle Australians really need.

After the Peugeot drive route took us through the same area as Ford's local reveal of its 'Indian' Fiesta sedan, these questions became even more relevant. Renowned for its twisty, narrow and chopped up roads, the launch route soon exposes an import that hasn't been prepared for local use.

The 307, while not as smooth as its bigger 407 sibling, was quite impressive in the way it soaked up bumps and could leave the bitumen at speed without drama. The diesel seems to have an abundance of grunt especially when the six-speed auto rarely leaves it on the wrong foot.

The longer wheelbase of the Touring left it with a very different feel and more loping gait than the Hatch which former big car owners would appreciate. It was uncanny driving such a compact car (especially a wagon) that didn't pitch and buck over the dips and rises on these very ordinary roads.

It is this ride quality and clever use of space that could be the clincher.

The 307 on release felt and looked a little too mass-produced and mainstream compared to Peugeots of old but this latest version is a step in the right direction. It's not the first time Peugeot has needed the Series II version to complete the job.

The afternoon drive session was too short for anything other than superficial impressions but long enough to confirm the relative quietness of the latest diesel, the responsiveness of the new auto, the 307's structural integrity, extra seat comfort and general design flair.

Enough, in fact, to warrant a closer acquaintance.