Quick Drive: Peugeot 307 XSE HDi

By Feann Torr - 14/Sep/2006

You've probably been hearing a fair bit about diesel-powered passenger cars in recent months, and for good reason. Diesel technology is advancing at a rapid rate, and most passenger diesel cars sold today are far from the low tech, agricultural vehicles that many perceive them to be.

We've tested a number of diesel passenger vehicles over the years here at the Motoring Channel and though they may not be a large part of the Australian motoring landscape at the moment, making up a measly 2% of the total market (not including SUVs), many argue they have a very bright future - and some even have the statistics to back up such arguments.

Peugeot is one of them.

In 2004 just 12% of Peugeot's cars were sold with diesel engines, but in 2005 that figure almost doubled, reaching 23%, and thus far in 2006 that figure has risen to 35%. Simply put, one in three Peugeot's sold in Australia are now diesel powered.

In countries like Spain and France diesel passenger cars make up around 70% of the new car market, and Europe as a whole is split 50:50 between petrol and diesel car sales, which is in stark contrast to petrol-diesel split in Australia. But the times are changing and more and more Australian drivers are turning to diesel-powered cars to not only reduce fuel costs - or more aptly drive their fuel dollars further - but to also reduce the impact that driving makes on the environment. And if you were to ask the French car company what it thinks about the future of diesels in Australia, the response will be immediate and very positive.

Peugeot has been selling diesel-powered passenger cars in Oz since the late 1970s and today it has one of the largest ranges of passenger diesel vehicles of all the car companies in Australia. Only Volkswagen has a similarly broad range. With the new 307 HDi 2.0-litre diesel now available with an automatic gearbox, and the new 207 1.6-litre diesel coming in 2007, Peugeot has big plans for the 'other, other' fuel type in Australia.

Peugeot's new 307 XSE HDi 2.0-litre diesel comes in hatch (above) and wagon (top) variants, and combines performance and fuel economy with a new 6-speed auto

Peugeot's popular small car, the 307, is experiencing an alternative fuel boom, with almost half of all models sold in Australia this year powered by a diesel engine. And until recently, it was only offered with a manual gearbox, while Volkswagen's diesel Golf offered a DSG 6-speed auto. 

For myriad reasons, Australian drivers are quite partial to the easygoing nature of automatic transmissions, and Peugeot has addressed this with the launch of a new 307 model featuring a 6-speed automatic gearbox.

Yesterday we attended the launch of the 307 HDi in hatch and wagon variants, now featuring this new 6-speed automatic gearbox - which in itself is a rather big deal. How many other small cars come with a 6-speed auto these days?

Apart from the VW Golf, very few.

Powered by a 100kW 2.0-litre diesel engine, driving the new 307 hatch and wagon with a 6-speed auto is impressively easy. They're neither loud, nor smoky and engine response is equal to - and at higher speeds better than - that of a petrol lump, thanks to the turbocharger and intercooler boosting low end torque. 

We spent a good portion of the day driving the new 307 automatic diesel models, and also the 407 Coupe and 407 twin turbo diesel models, and Peugeot's plan to bombard us with the latest in diesel technology highlighted a few things for me. 

While I've always been interested in diesel power, having spent a good part of my life in Europe where they are more numerous, I am increasingly impressed with how the European importers are treating their diesel vehicles - that is, with the respect they deserve.

Dropping a 6-speed automatic in a small car is almost unheard of - and in a diesel vehicle in a country where 98% of passenger cars are powered by petrol? Peugeot either has very large cojones, very boozy business meetings or a master plan that foretells of a green and frugal future for diesel cars in Australia, and I'm inclined to lean towards the latter observation.

While most people understand that for each litre of diesel fuel consumed, you can travel further than compared to a similar sized engine using a litre of petrol, there is a preconception in this country that diesel engines lack the performance of their petrol-powered counter parts. For a long time this was true, but as was evidenced from driving the 307 diesel with the 6-speed auto shifter, these little tackers have a good turn of speed.

From standstill the torque builds incredibly quickly from the 2.0-litre 307 HDi and the engines rarely need to be revved beyond 3000rpm to extract best performance. The 6-speed automatic transmission works nicely with the engine, dropping gears when needed and, having a short-term memory of sorts, it remembers if you've been gunning it or just cruising, and responds accordingly by holding gears or shift early.

Ticking over at under 2000rpm in sixth gear at 100km/h on the highway, overtaking is effortless in every sense of the word. While most 2.0-litre petrol engines generate around 200Nm of torque, this bad boy makes more than 300Nm of the stuff, though I should mention that like most diesel engines, it delivers this force more sedately than a petrol engine.

The 2.0-litre diesel engine that powers the 307 HDi is a 4-cylinder inline type featuring 4-valves per cylinder and is fitted with an air-to-air intercooler and a Garrett variable geometry turbo to improve torque output. These variable geometry turbos are rather clever little units, and feature small vanes within the turbo housing that can be actuated to improve or reduce exhaust flow in to the turbine. This improves response at both high and low revs and reduces turbo lag, and also negates the need for a wastegate. Simply put, a variably geometry turbo gives you more go, more smoothly, and are even used on the new Porsche 911 Turbo.

Peak power for the 307's diesel engine is 100kW @ 4000rpm, but the more telling figure is the 320Nm of torque @ 2000rpm. Better yet, there's even an 'overboost' function that's automatically activated when at full throttle and hits between 1750 and 3200rpm, increasing torque to 340Nm.

All this torque makes the nimble 307 very easy to drive, and coupled with the 6-speed auto it's remarkably flexible too. Peugeot claims an impressive 6.7L/100km fuel consumption rate on the combined city/highway cycle. Peugeot's HDi powertrains also feature particle filtration systems that are highly advanced systems that trap particulates  - mainly carbon - that result from the burning of diesel. With these particle filters, sometimes called FAPs, diesel engines are much cleaner to run nowadays than they used to be, and rid them of the visible diesel smoke that used to be part and parcel of owning an diesel-powered car.

Peugeot went to great lengths to explain every aspect of their HDi diesel engine technology, revealing that the particle filter is among the most important aspects of creating a cleaner diesel vehicle. They last for about 210,000 kilometres before they need replacing, and cost around $1,400, but Peugeot was quick to point out that the fuel savings made by driving a diesel vehicle more than compensates for the extra servicing costs.

Interestingly, a 2.0-litre diesel engine will generally emit 30 - 40 per cent less CO2 (carbon dioxide) than a 2.0-litre petrol engine, which is the stuff that floats into the atmosphere and traps more of the sun's heat in, and is increasingly becoming a crucial issue in politics, business and everyday life. Talk of carbon footprints and carbon trading is gathering momentum, and the environmental aspect of driving a combustion engine vehicle will featuring prominently in an upcoming Peugeot advertising campaign that the company hopes will appeal to a broader audience. Focussing on economy, efficiency and the environment, Peugeot hopes to change the preconceptions that many Australian drivers have about diesel powered passenger cars.

There is much discussion about the future of diesel cars in this country and as any diesel car owner will tell you, filling up with diesel fuel can be a harrowing experience at times. You may have to battle with trucks for real estate at the pump, and then there's the high flow nozzles and the messy residue that sometimes accompanies these. Peugeot agrees that more needs to be done to improve diesel infrastructure at fuel stations across the country, and is actively talking with "one or two" oil companies to raise service station levels to more closely match those of Western Europe. But as more and more people turn to diesel passenger cars, this will improve based on purely on demand, and Peugeot predicts that by 2010 diesel passenger cars will make up 10% of annual new car sales in Australia, as opposed to the current 2.5%. 

Based on current sales trends, that could translate to around 90,000 new diesel cars sold per annum in this country in just five years time.

Peugeot and a handful of other European automakers have grand visions for diesel passenger cars in Australia, and it's clear that Peugeot has a strong desire to be a leader in the field. It hopes to have a diesel hybrid small car for mass consumption by 2010, which would drink about 3 litres of diesel fuel for every 100km travelled, and the upcoming 1.6-litre 207 diesel will deliver sub 5L/100km fuel ratings when it arrives here in 2007. But before any of this can happen, car makers who are pushing diesel power must first convince Aussie drivers that diesel cars are cool.

Conclusion

I know it's a terribly cheap cliché, but I've got to say it: don't knock 'em 'til you try 'em. Having punted Peugeot's latest diesel models, I can report that the days of smelly, noisy, dirty and poor performing diesel cars are now well and truly fading into the past. These HDi (high-pressure direct injection) diesels are more comparable to petrol models than ever before, and the power and acceleration levels the 307's displayed was surprising.

Diesel power in a small car guise with an automatic transmission makes for effortless driving, and we're very keen to spend more time with cars like the new 307 HDi XSE hatchback with the 6-speed automatic transmission to give you a better idea of what they're like to live with. But what about the $34,790 price? This does sound a bit steep for a small car, but having driven the thing I reckon it's decent value-for-money, and the standard features make aren't too shabby either. There are indeed a few hidden servicing costs in relation to the particle filter, but these will most likely be absorbed by the savings made in fuel consumption over time.

Though the price of petrol has dropped in recent weeks, the fact still remains that petrol is not as cheap as it was - and never will be. The argument for diesel power in passenger cars is gaining momentum - they're cleaner, quicker and more frugal than ever before. If you're still not convinced, take one for a test drive - you may be surprised at how far they've progressed.