New engines, better specification
Steering lacks feel, petrol models lack refinement.
The 307 is larger and taller than the 306 it replaces with hatchback, estate, SW (compact MPV) and coupe convertible bodies. Winner of the European Car of the Year title in 2002, safety is improved, and there's a wide choice of engines. But the 307 is too expensive - new prices rival the VW Golf - and the cabin is neither as comfortable nor as well proportioned as the Golf's.
Peugeot has countered with a bunch of special deals. Revisions in 2005 consists of a new front end treatment and revised range structure. Perhaps the most notable change however is the new electrical system which brings improved functionality and should hopefully address the unreliability issues.