PEUGEOT has freshened the face of the 306, slashed the price of several models, improved specification across the range, and axed the saloon Sedan. The range's new look adopts the styling of the old 306 GTi-6, including full body colour-coded side rubbing strips, bumpers, door handles and door mirrors. All-new 306s have clear glass headlights and fog lamps while, inside, a new metal-look facia and aluminium gear knob, hand brake button and air vent switches enhance the lower medium contender's sports theme.

Even greater changes apply to the aging 306's prices, with on-the-road costs for some models falling by as much as £1,075, while in many instances the new 2.0-litre common rail HDI diesel engine enters the range at prices below the old 1.9 D turbo it replaces. Fleets will also be able to continue to buy the workhorse - the normally-aspirated 1.9 D - at a price £85 cheaper than its predecessor with a sunroof and £435 cheaper with air conditioning.

The range starts at £11,995 on the road for the 1.4 Meridian five-door, but this entry level model now features air conditioning rather than a sunroof. The three-door XS 1.8 with sunroof costs £13,545 (£14,270), while the air-conditioned XS 1.8 is £1,075 less at £13,545 (£14,620). Throughout the entire range, Peugeot has abolished the £350 premium it used to charge for air conditioning in lieu of a sunroof.