[1] It was the replacement for the Talbot Horizon, which had started life as a Chrysler in Britain and a Simca in France, and was also being built in several guises for the market in America.

Styling was the responsibility of the former Chrysler-Rootes design studios in Coventry, whilst much of the engineering was done at the Simca site at Poissy in France.

The only stipulation from PSA management was that the new car had to use as much existing architecture as possible; hence the use of a stretched Peugeot 205 floorpan and door shells, whilst the Simca engines and transmissions from the Horizon were also carried over.

The larger Alpine hatchback and Solara saloons were also axed in 1986, a year before Peugeot began production of the similar sized 405, successor to the 305.

In July 1986 the first diesels arrived, the 1905 cc, 65 PS (48 kW) PSA XUD engined GLD, GRD, followed by the SRD in 1987.

Largely due to its partially British origins, the Peugeot 309 became a popular choice in the United Kingdom, and in 1987, it was joined on the production line by the larger 405.

Also, an updated interior was required to address severe criticisms leveled at the Phase 1's, Talbot-designed multi-piece dashboard which was prone to developing squeaks and rattles.

In July 1993, the 309 lineup was severely reduced and only the two Vital (petrol or diesel) models remained on sale until December.

India's Premier Automobiles Limited (PAL) began local assembly of the long mothballed 309 in 1995, only with five-door bodywork.

Labour and servicing issues were hindering the car in the marketplace, and after Premier formed a second joint venture with Fiat, Peugeot announced the end of their partnership with PAL in November 1997[10] with sales of the 309 continuing into 1998.

Options on this also included central locking, electric front windows and the Peugeot vacuum operated moonroof, essentially a large glass sliding sunroof.

The 309 Automatic received equipment about on par with the GR, and was available with either the 1.6-liter XU5 or later with a lower-tuned, catalyzed 1.9-liter XU9J1 engine with 105 PS (77 kW; 104 bhp).

Also benefitted from uprated suspension, tinted glass, a deep front airdam, a leather steering wheel and internally adjustable headlights.

The Look, available in blue, white, and very scarce black were fitted with unique seat fabric with a sunroof and coloured bumper inserts.

The Goodwood, Limited Edition for the United Kingdom was a GTI with full black leather interior as standard, and no cost optional wooden steering wheel, gearknob and CD Autochanger.

The 309 Goodwood was only available in limited numbers for the United Kingdom (only 398 vehicles were constructed) in metallic pinewood green with anthracite Speedline alloy wheels, with a polished metal lip on the outer rim and badging depicting the Goodwood racing circuit on the front wings, tailgate and steering wheel boss.

When the Goodwood was launched, the high asking price resulted in some examples not finding homes until 1994, hence some being registered on an 'L' prefix registration.