Peugeot 307 diesel hatch 2006 review

Get past the long line of acronyms and the dirty diesel bowsers, and you will find refined oil.

Diesel bowsers are still in the dark ages. Icky and slippery, froth at your feet, the smell of au-de-diesel lingering on the fingers for days, but the diesel drivetrain just gets better and better. The servos better catch up.

Of the car companies pushing diesel engines onto a still-sceptical Australian market, Peugeot is one of the frontrunners. With the introduction of its long-awaited 206 replacement early next year, every Pug model, bar the big 607 saloon, will offer a diesel variant.

Explore the 2006 Peugeot 307 range

• Peugeot 307 2006 review
• Peugeot 307 diesel hatch 2006 review

Until the 207 in 2007, the most affordable diesel in the range is still the 307 HDi. Take-up of the diesel drivetrain has accounted for 48 per cent of all 307 sales, despite the absence of an automatic transmission.

The new six-speed automatic gearbox, complete with sport function and manual sequential shifter, never felt more at home in a Peugeot.

The 307 XSE HDi automatic features the 2.0-litre turbocharged engine from the 407 ST HDi, pumping out 100kW and 320Nm and containing a trick particulate filter to make the trees by the side of the road smile (and meet emissions regulations).

It is one of the more refined small-capacity diesels on the market, and matched to a sweet six-speed auto, memories of antiquated smoky oilers with shifters like tractors are well and truly gone.

Although the sound of the motor is definitely diesel on start up, and the engine rock is familiar, it is difficult to hear the grumble when you get going, thanks to the cabin's sound proofing.

Surprisingly, the soundproofing has not been altered from the petrol powerplant (unlike the 407, which received laminated glass to block out the diesel growl).

On the road, the six-speed is perfectly matched to the low-revving engine, with smooth, instant downshifts and no trace of shift-shock.

The auto is eager and willing, speeding up its response in Sport mode to pull the oiler out of its cruisy lull for effortless ascents and acceleration, often dropping two gears without complaint.

Manual shifting is a little for the dummies, with first gear changing up at 3500rpm automatically while the rest of the gears refuse to hold after about 4500rpm. But at least you have the choice of manual selection, which further speeds up the shifts when needed.

It is a shame the steering rack is not up to speed with the shifter. Turn in is slow, and hampered by bumps that unsettle the steering.

The suspension itself copes well with road-surface changes, but turns into a bit of a boat on the bends.

Granted, this is not a sports car, but it misses out a little when compared to the involving dynamics of some of its contemporary diesel competitors.

But when compared to a petrol of similar capacity, the diesel offers a welcome reprieve from high-revving anxiety on the wrong side of the broken white line - overtaking is never a problem.

Neither is the fuel use, at a tardy 6.7L/100km claimed, and 7.6L/100km on test from the trip computer after a spirited two-hour drive.

This is significantly higher than the manual, which claims 5.4L/100km, but makes up for it with an effortless drive.

The auto carries a $2,200 premium over the manual at $34,790, with a touring wagon priced at $36,490.

Peugeot is releasing yet another diesel next month, an “affordable” base 407SR HDi. This release corresponds with the Australian International Motor Show, where Pug will also feature its 307 CC Hybride concept car.

A 1.6-litre diesel-electric hybrid with a claimed fuel use of 3.4L/100km, the concept is planned for production in 2010, once the price is worked down to a feasible level.

But it may prove to be too little too late. Considering the rapid rate of refinement from small-capacity diesels, the fuel use from a regular diesel engine will probably be almost as low by then.

Samantha Stevens is a roadtester on the CARSguide team. Her work appears here and in the Sunday Telegraph CARSguide. A version of this review, as well as other news, reviews will appear in the Sunday Telegraph.