PEUGEOT'S new lower medium sector fleet contender, the 307 is to be launched in June, replacing the current 306, which sold 425,500 units since it arrived here in 1993. Peugeot expects the new 307, unveiled yesterday in Paris, will overtake the 306 as the most successful Peugeot in the UK.

There will be a choice of six engines at launch - three diesel and three petrol - including a new small direct injection diesel engine. Prices and trim levels will be announced at a later date.