Peugeot 306
| Company type | Public |
|---|---|
| Industry | Automotive |
| Founded | 1810 |
| Founder | Jean-Pierre Peugeot |
| Headquarters | Sochaux , France |
| Products | Automobiles |
| Parent | PSA Peugeot Citroën |
The Peugeot 306 is a small family car manufactured by the French automaker Peugeot between 1993 and 2002, serving as the successor to the 309. Throughout its production run, the model underwent multiple updates and design changes to maintain its market appeal before being succeeded by the 307 in 2001. However, production of the cabriolet and estate editions continued until 2002. Additionally, assembly occurred in Argentina via Sevel from 1996 through 2002.
Background
Development of the 306 took place from 1990 to 1992, with its launch in early 1993 intended to replace the Peugeot 309, which had interrupted Peugeot’s numerical naming convention. Although initial speculation suggested it would succeed the smaller Peugeot 205, Peugeot clarified by late 1991 that the 306 would replace both the 309 and selected versions of the 205, while the latter remained available alongside the newly introduced entry-level Peugeot 106 supermini in 1991.
From a mechanical standpoint, the 306 shared much of its chassis and fundamental architecture with the earlier Citroën ZX. Its design was crafted by Pininfarina, drawing inspiration from the successful Peugeot 205, and it demonstrated superior performance compared to its Citroën counterpart. This platform also served as the basis for models such as the Citroën Berlingo and Peugeot Partner, as well as for the ZX’s successor, the Citroën Xsara. The strategy of platform sharing between Peugeot and Citroën has been a core approach of their parent company, PSA Peugeot Citroën, since Peugeot acquired Citroën in response to the 1974 energy crisis.
306 Phase 1
Introduced in March 1993, Phase 1 featured three- and five-door hatchbacks initially, with sedan and cabriolet variants following in 1994. In Australia, this version was marketed as the N3 and remained in production until 1997.
A wide range of trims was available during this phase, including Genoa, XSS, XT, XRdt, and XLd. Sportier versions such as the S16, XSi, GTI-6 (petrol), and D-Turbo S (diesel) were introduced later. Apart from the GTI-6 and cabriolet editions, all models were competitively priced within their segments.
Petrol engines
The early petrol powertrains consisted of reliable four-cylinder engines previously utilized in Peugeot vehicles like the 205, 309, and 405. Standard models were equipped with variants of the TU series featuring 8-valve configurations in displacements of 1.1-, 1.4-, and 1.6-litres. The smallest engine was soon discontinued, while both the 1.4- and especially the 1.6-litre units achieved strong sales due to their balance between fuel efficiency and performance.
Larger capacity power units derived from the XU series—previously used in models such as the 205 GTi 1.9 and higher-specification 405s—powered automatic and high-performance derivatives. A limited manual option coupled with an automatic transmission was available for a 1.8-litre engine, while both eight- and sixteen-valve versions of a two-litre engine powered XSi and S16 variants respectively. In Australia, only engines sized at 1.8 and two litres were offered.
Diesel engines
Renowned for their diesel technology, Peugeot equipped the initial 306 lineup with engines from the XUD series available in naturally aspirated and turbocharged forms. Starting at a displacement of 1769 cc, this was soon enlarged to 1905 cc. The turbo-diesel variant complemented the vehicle’s handling characteristics by delivering performance levels on par with many petrol counterparts—a rarity among affordable mainstream diesels at that time. The engine’s design ensured minimal adverse effects on driving dynamics despite added weight. The Indirect Injection XUD Diesel engine utilized the combustion chamber concept developed by Ricardo, known as Comet, which has also gained popularity for conversion to vegetable oil fuel when equipped with Bosch fuel system components.
Chassis design
The front wheels were driven by PSA powertrains mounted on a traditional chassis that incorporated a MacPherson strut front suspension equipped with an anti-roll bar, alongside a PSA Peugeot-Citroën independent trailing arm and torsion bar rear suspension, initially introduced on the Peugeot 305 estate. PSA's engineering team incorporated distinctive features such as passive rear wheel steering achieved through specially engineered compliance bushes in the rear suspension, as well as proprietary shock absorbers. With extensive use, axle mounting bushes and rear axle trailing arm bearings may deteriorate, potentially resulting in expensive repairs or the need for axle replacement. To enhance weight distribution, reduce understeer, and lower the center of gravity, diesel and larger petrol engines were inclined backward to position mass behind the front axle.
Versions
Available trim options comprised XN, XL, XR, XT, and XS; with XN representing the entry-level and XT the premium variant. The XT trim was exclusively offered as a 5-door model, whereas XR, XN, and XL trims were available in both 3- and 5-door configurations. Both D-Turbo and XSi trims came in either body style; however, XS and S16 trims were limited to 3-door versions only. The prior "X/G" nomenclature was replaced by trim codes that no longer indicated door count. Diesel variants appended a "d" suffix to their trim code, while turbodiesels used "dt." From 1994 onward, special editions carried the "Alpine" designation but were confined to 3-door models.
Sedan models
Sedan versions featured trims SN, SL, SR, and ST, offering an alternative to the predominantly hatchback-focused market.
Performance models
Peugeot introduced a D-Turbo "hot hatch" variant—essentially an XS petrol model fitted with a diesel engine. Although not the earliest affordable performance diesel (preceded by the MkII VW Golf GTD), the 306 D-Turbo was primarily available as a 3-door model with only limited 5-door units produced.
Both D-Turbo and XS trims included front fog lamps, body-coloured bumpers with enhanced spoilers, sport seats, a distinctive steering wheel design, and wider chromed exhaust tips; 14-inch alloy wheels were offered as an option. These models occupied a middle ground between XR and XT in terms of equipment.
The XSi 8-valve 2.0 Petrol featured subtle side skirts and initially provided optional 15-inch five-spoke alloy wheels that soon became standard.
The S16 (soupape-16 or 16-valve) was available only as a 3-door Phase 1 model before being succeeded by the GTI-6 in 1996. Both utilized 16-valve XU-series engines with Magneti Marelli fuel injection systems, delivering impressive power and torque for their time. The GTI-6 upgraded to a close-ratio six-speed gearbox paired with a reworked XU10J4RS engine producing 167 bhp, surpassing the S16’s 155 bhp XU10J4 ACAV unit. Modifications to the chassis enhanced handling characteristics and mid-range torque for improved driving dynamics. The GTI-6 spanned from Phase 1 through Phase 3 updates until 2000, maintaining consistent mechanical specifications despite cosmetic revisions.
A UK-only offering was the 1999 306 Rallye, mechanically identical to the GTI-6 but stripped of features such as fog lights, air conditioning, sunroof, electric windows, and temperature sensors to reduce weight. Production was limited to 500 units across three solid paint colours: black (100), Cherry Red (200), and Bianca White (200). This model combined Phase 2 electrical components with some Phase 3 body parts. The Rallye’s interior featured specific cloth upholstery reflecting its minimalist specification.
306 Phase 2
The 306 underwent its only significant revision in May 1997, known as the "Phase 2" update (referred to as N5 in Australia). Although the fundamental body shape remained unchanged, the headlights, grille, and bumpers were redesigned to reflect Peugeot’s newer, more rounded family aesthetic showcased on the Peugeot 406. The turn signals were integrated into the headlamp assemblies, and the updated Peugeot lion emblem with a filled block design was introduced. This phase also saw the debut of an estate version.
At the rear, a refreshed design featured a new font for the model designation without the previous black plastic backing. Inside, enhancements included a digital odometer and upgraded trim materials to maintain market appeal. Engine improvements involved fitting 16-valve cylinder heads to both the 1.8 and 2.0 petrol engines, resulting in slight power increases. The UK market revised trim options to L, LX, and GLX, while XS, XSi, and GTI-6 trims continued with Phase 2 styling cues.
Starting in late 1998 (1999 model year), select models received further refinements such as an aluminium-effect centre console, chrome Peugeot badges on steering wheels, colour-matched bumpers on some variants, new upholstery choices, and removal of the black strip on the bootlid. Additional versions were introduced under Phase 2 specifications.
Europe
Beginning in 1997, eighty Phase 2 306 S16s were deployed by the French National Gendarmerie Rapid Intervention Brigade as replacements for Peugeot 405 T16 sedans. These vehicles were adapted for use on France’s autoroutes with features including a single flashing roof beacon, an extra internal mirror, and standard Gendarmerie livery over Peugeot’s specialized 'Gendarmerie Blue'. The fleet was eventually succeeded by the Subaru Impreza WRX in 2006.
United Kingdom
The Rallye model was introduced exclusively in the UK in 1998. It combined GTI-6 mechanical components with reduced equipment levels—manual windows and mirrors, absence of air conditioning, Rallye-specific cloth seats, and no front spotlights—resulting in a lighter vehicle. Priced at £15,995—more than £2000 cheaper than the GTI-6—it was offered in four colours: black, Cherry Red, Bianca White, and Dragoon Blue (limited to a single unit), with only 501 produced. Insurance premiums were high due to its group 16 classification. Production spanned both Phase 2 and Phase 3 versions; some Rallye cars incorporated Phase 3 features like flush glass tailgates but retained Phase 2 electrical systems. The UK Rallye differed from the Australian N5 Rallye launched in 2001, which was based on a five-door XT model. Additionally, Peugeot released an SP ("sport pack") variant in 1998 featuring three distinct equipment levels.
In 1999, the Meridian special edition was reintroduced with half-leather seating and upgraded interior appointments.
Mexico
Following Peugeot’s market entry in Mexico, the 306 saloon was launched there in 1998.
306 Phase 3
From mid-1999 onward, Phase 3 models received several exterior modifications including clear lens headlamps, circular clear fog lights, fully colour-matched trim pieces, elimination of the black plastic strip along the tailgate edge, flush-fitting glass seals on rear windows, redesigned tailgate badging, a new rear wiper design, and updated paint colours. Inside, updates comprised a rounder gear knob topped with silver and instrument cluster backgrounds featuring silver tones with white needles replacing previous red ones.
The XSi, XT, and D Turbo trims adopted the GTi-6’s bodykit and interior styling elements but did not include cyclone alloy wheels. Diesel powertrains transitioned from older PSA XUD engines to modern HDi common rail technology; however, some entry-level models retained naturally aspirated DW8 units. Most variants came equipped as standard with ABS, multiple airbags, and rain-sensitive automatic wipers—features that were omitted only on base trims.
Conclusion
Although Peugeot made considerable efforts, the vehicle performed poorly in ownership and customer satisfaction assessments during its production period, including the annual JD Power survey associated with the BBC Top Gear show. Nevertheless, it consistently appeared among the Top 10 Best Selling Cars In Britain between 1994 and 1998, just missing the top ten in its last three years. The model also enjoyed robust sales figures across France and much of Europe.
In Australia, a final edition named the 306 Rallye was introduced in early 2001, derived from the N5 XT 5-door variant. It utilized the 99 kW/132 bhp engine and 5-speed manual transmission found in later XSI models but featured a less aggressive suspension setup and simpler interior appointments. Offered with an automatic transmission option, it replaced the XT trim and was sold with a discount of AU$2000. This Australian version differed from the UK’s 306 Rallye sold during 1998-99, which was a 3-door model based on the 306 GTI-6.
Production of the hatchback ended in 2001 to pave the way for the Peugeot 307, while cabriolet and estate variants continued until 2002. The saloon version was withdrawn from the United Kingdom market in 1999 but remained available across Europe until 2002.
Motorsport
The Peugeot 306 Maxi took part in Group A competitions within both French national events and the World Rally Championship. Additionally, the GTI variant achieved victories at the Spa 24 hours endurance race in consecutive years, 1999 and 2000.
The model also claimed championships in the Danish Touringcar Championship from 1999 to 2001 and in the Asian Touring Car Series between 2000 and 2002.
Within the BTCC, the Peugeot 306 GTi was a key contender from 2000 through 2003. In the year 2000, Alan Morrison piloted a Vic Lee Racing-entered 306 GTi in Class B, securing his class title with thirteen wins and accumulating 264 points, narrowly surpassing James Kaye. Other notable drivers included Will Hoy, Lee Linford, Toni Ruokonen, and Dan Eaves, all of whom earned points finishes; Ruokonen and Eaves also reached podium placements.
During the BTCC season of 2001, two HTML-sponsored Peugeot 306s competed in the Production class with Norwegian drivers Roger Moen and Simon Harrison. They frequently finished close together, collectively achieving eleven podiums and securing first and third positions overall—Harrison scored 227 points while Moen earned 212. Tech-Speed Motorsport entered two additional cars driven by Paul O'Neill and Annie Templeton; O'Neill’s top result was second place in class (sixth overall), concluding eighth with 74 points; Templeton ended nineteenth with 21 points. Tom Boardman also raced his own Peugeot 306, attaining a best class finish of third place (seventh overall) and finishing eleventh with a total of 66 points.
Safety
In tests conducted by Euro NCAP in 1998, the Peugeot 306 received a rating of three out of five stars for adult occupant protection. This performance was respectable when compared to the two-star rating awarded to the 1999 Ford Escort but fell short of the four-star results achieved by both the first-generation Ford Focus (1999) and the Vauxhall/Opel Astra (1998).
According to the Australian Used Car Safety Ratings published in 2006, covering models from 1994 to 2001, the Peugeot 306 was rated as "significantly better than average" for occupant safety—one of the highest rankings that year. It earned four stars for driver and occupant protection alongside an "excellent" evaluation for safeguarding other road users. These assessments are based on analysis of more than seven million police-reported collisions across Australia and New Zealand between 1990 and 2013, reflecting this vehicle’s effectiveness at minimizing serious injuries to drivers and others involved in accidents.