Peugeot aims to Rallye sales

PEUGEOT has launched a special edition of the 306 as the popular small-medium hatch nears the end of its life.

Called the Rallye, it replaces the top-selling XT in the 306 range, which is due to be phased out in favour of the new generation 307 in December.

Peugeot says the Rallye has been introduced to mark the company's 2000 World Rally Championship victory, but more tempting for potential buyers will be the $2000 price-cut from XT to Rallye without any significant loss of specification level.

Like the XT, the Rallye is powered by a 100kW, 2.0-litre, four-cylinder engine, with standard features including dual airbags, anti-lock brakes, alloy wheels, automatic rain-sensing wipers, power windows and mirrors and climate control air-conditioning.

The retail price has been set at $26,990, a drop of $2000 compared to the XT. The four-speed automatic transmission option is an extra $2000. Prices for the rest of the range remain unchanged.

The 307 - which is longer, wider and taller than the 306 - is the final member of a trilogy of new Peugeot models due in 2001. The 607 luxury car arrives in September and the metal-roofed 206CC cabriolet in October.

The end of 2001 also marks the date for the official transfer of the Australian and New Zealand Peugeot distributorship from Inchcape Motors Australia to Singapore-based Sime Darby Group.