PEUGEOT is finally back into premium small-car contention with the 308, even though some may dismiss the hatch as looking too similar to the 307 that preceded it. But all it takes is a few moments inside the completely redesigned interior, or a spell behind the wheel, to realise that the French engineers have gone to great lengths to address the quality, driveability and space efficiency issues that the old car suffered from. In top-line XTE diesel guise, the 308 even makes a convincing alternative to an Audi A3 or Mercedes-Benz B180 CDI.