As the replacement for the Peugeot 306, the new 307 model would be expected to improve even further on the 306’s reputation for providing maximum driving enjoyment in a package that’s space-efficient, comfortable and attractively styled. After driving the new 307 range and testing a manual 2.0 litre version, we’re able to report that it does live up to those expectations. The handling and steering are superb, performance in the 2.0 litre manual is quite strong, there’s a good combination of occupant and load space, equipment levels are extensive, and the car looks good. Considering what the 307 offers, pricing isn’t too bad. Initially it will be available only as a five-door hatchback and the range starts with the 1.6 litre model. It costs $25,990 in manual form and $28,190 for the automatic.