PEUGEOT has experienced something of a renaissance in recent years and the credit for much of this lies with the 306. This refined small car fits nicely into the Corolla/Civic/Lancer/Astra market and adds unquestionable European flair to the market - along with peerless ride and handling. Performance is very competitive in the segment, thanks to the 16-valve engine introduced in 1998, but the overall detail finish still leaves some question marks.