Some months ago, Peugeot released 2 new diesel engines for the Australian 307 hatchback and wagon (known as Touring in Peugeot-speak). There's a 1.6 litre and a 2.0 litre unit. And we, again, took the opportunity to see why diesels are offering an attractive proposition to the thrifty folks of Australia.

But what is it with the swing towards European diesels? That is a good question! Seemingly, few people seek reduced power, so can a 1.6 litre diesel satisfy an Aussie? The power and, particularly, the torque of the Peugeot 1.6 diesel satisfied this driver! Power is 80Kw @ 4,000 rpm and torque is a healthy 240 Nm @ 1,750 rpm. This is sufficient to get the 1,335 kg (approx) car from 0 to 100 km/h in a claimed 11.2 seconds. This acceleration figure isn't what you'd expect from a performance car. But the 307 HDi isn't a performance car. It just offers reasonable performance, in a comfortable environment with some outstanding fuel consumption figures.

Modern-day turbo diesels from Europe offer exciting fuel consumption. Believe these, if you will. I do! City cycle fuel consumption is a claimed 6.1L/100kms and the highway cycle comes in at a very pleasing 4.3L/100kms. These astonishing figures seem achievable, as we were often amazed at how slow the fuel gauge was travelling.

As you would expect from a Peugeot, the driving dynamics are excellent. Peugeot know how to send a car around corners! The steering and handling on the 307 offers a rewarding experience. You expect this from Peugeot .... and they deliver! Brakes and suspension work in the traditional Peugeot manner.

The price of the current model Peugeot 307 XS HDi (1.6 litre diesel) is $29,490 (RRP).

Options for the 307 XS include metallic paint ($700), sunroof ($1,500) and alloy wheels ($280).

Is there a downside to the Peugeot 307 diesel? Yes, there certainly is ..... it is only available with manual transmission. This will rule it out of consideration with many people. And quite rightly so, as the world has moved on from the days of manually selecting your forward gears. An annoying fact for some drivers will be the lack of a driver's footrest. But other than that, there is no shortfall that I'm aware of with this particularly pleasing car.

But we did experience a fuel supply problem with this car during our test period. A small connection in the fuel line became dislodged for some inexplicable reason. This brought the 307 to a standstill. However, as every cloud has a silver lining, we were provided an unexpected opportunity to assess 'Peugeot Assistance', the breakdown/roadside assistance scheme. We were surprised at how efficiently all parties were interacting with each other to get us back on the road. The only conclusion we could reach was quite simple .... the car is great, so too is the roadside assistance programme. The tow truck arrived at our out-of-the-way location promptly and picked us up, together with the car. We were speedily on the way and the car was dropped off at a Peugeot dealer for repairs. We continued our trip in a taxi, the expense of which was covered by Peugeot Assistance.

Despite having experienced a breakdown, the Peugeot 307 HDi gains our confidence as a very capable and satisfying drive. With miserly fuel consumption, very comfortable interior, excellent ride qualities, attractive styling and a reasonable price tag the 307 HDi demonstrates that today's European diesel compact cars are a particularly pleasing package. And the Peugeot is there with the best of them!