However, by the end of 1991, Peugeot had confirmed that the new car was going to replace the 309, as well as some versions of the 205, which was going to remain in production for several more years, despite the launch of the entry-level 106 supermini in September 1991.

Mechanically, the 306 is virtually identical to the Citroën ZX, which was launched two years before the 306: both cars use the same floorpan and core structure.

The initial petrol engines used were proven four-cylinder units, which had gained a solid reputation in Peugeot models such as the 205, 309 and 405.

The Indirect Injection XUD Diesel that uses the Ricardo Comet combustion chamber design, is popular for conversion to run on vegetable oil, as long as the Bosch Fuel System is fitted to the engine.

[6] The familiar range of PSA powertrains drove the front wheels of a conventionally designed chassis.

Peugeot created a D-Turbo "hot hatch" version, which was essentially a petrol XS model with the diesel unit installed.

The 306 was not the first mainstream affordable performance diesel, with that plaudit arguably going to the MkII VW Golf GTD of the mid-1980s.

The D-Turbo and XS variants were fitted as standard with front fog lights, body-coloured bumpers with deeper spoilers, sports seats and different steering wheel, and a wider, chromed exhaust tailpipe; 14-inch alloy wheels were an optional extra.

The engines in both cars were 16-valve XU-series units with Magneti Marelli fuel injection and produced excellent power and torque outputs for the time.

It received Phase 2 and 3 cosmetic and electrical updates alongside the rest of the range, but the engine and mechanical specification remained largely unchanged.

Mechanically the car was identical to a GTI-6, but had a minimal specification that deleted many GTI-6 standard features including fog lights, air conditioning, sunroof, electric windows, temperature sensor.

Indicator lamps were now incorporated into the headlamp unit and the new style "block filled" Peugeot lion logo was adopted.

A new-style typeface for the car's model number was adopted on the tailgate, removing the black plastic backing.

There were also some changes to the dashboard layout, including a digital odometer, and trim quality which freshened up the car in the face of increasingly stiff competition from other manufacturers.

XS, XSi and GTI-6 models continued as before, but with the Phase 2 headlight, grille, bumper and other cosmetic updates alongside the rest of the range.

Cars from 1998 onwards (1999 model year) received further enhancements, including an aluminium-effect centre console on certain versions and a chrome Peugeot logo on the steering wheel.

Other updates included removal of the black strip on the bootlid, colour-coded bumpers on some models and new upholstery in the cabin.

Eighty Phase 2 306 S16s entered service with the French National Gendarmerie's Rapid Intervention Brigade from 1997 onwards, replacing a fleet of Peugeot 405 T16 sedans.

Among other modifications for traffic police use on France's autoroutes, the 306s were modified to have a singular flashing light on the roof, an additional mirror in the interior, and were fitted with standard Gendarmerie vehicle markings on top of the specialist 'Gendarmerie Blue' offered by Peugeot at the time.

[13] Sold only in the UK, the Rallye was launched in 1998 using the mechanicals from the GTI-6, but with less standard equipment (manual windows and mirrors, no air-con, Rallye-specific cloth instead of leather and alcantara, front spot lights removed), making it 65 kg (143 lb) lighter than the GTI-6.

Sold at a discounted price of £15,995 (over £2000 less than a GTI-6), it only came in four colours - black, Cherry Red and Bianca White and one only in Dragoon Blue - and there were only 501 produced.

The Meridian model (originally a special edition) was also relaunched in 1999 and boasted a generous equipment list including new half-leather seats, and further cosmetic upgrades to the interior.

[citation needed] Models from mid-1999 saw further improvements and exterior modifications, including clear lenses on the headlamps, round and clear lensed foglamps, complete colour-coding of the exterior trim, removal of the black plastic strip on the lower edge of the tailgate, flush glass seal to rear windscreen, a redesigned tailgate rear badge, different rear wiper and new paint colours.

XSi, XT and D Turbo models all received the GTi-6's bodykit and interior styling additions but not the cyclone alloy wheels.

As with other XT variants, it had the same 99 kW/132 bhp engine and 5-speed gearbox as the late XSI models but different (less sporty) suspension and interior trim.

In 2000, the entry of one 306 GTi was that of Alan Morrison driving for Vic Lee Racing in Class B, which was made up of smaller and slower cars.

Two HTML-sponsored 306s were entered for the season in the Production class with Norwegian driver Roger Moen,[21] and Simon Harrison.

[30] UCSRs are based on statistics collected from car crashes involving death or serious injury in Australia and New Zealand between 1990 and 2013.