PEUGEOT is to launch common rail diesel engine versions of the 306 in the UK next month, it was revealed at the Geneva Motor Show yesterday. The 306 will feature a 90bhp version of the 2.0 110bhp HDI (high pressure direct injection) already in the 406.

It is expected that the introduction of the 90bhp engine will result in similar environmental and fuel consumption improvements as the 110bhp unit in the 406 - a 30% boost to fuel consumption, exhaust emissions cut by 40%-60% and significant reductions in engine noise.

The 2.0-litre HDI 90 bhp in the 306 will replace the existing 1.9 D Turbo unit and is expected to be available in all 306 model variants. However, just as the HDI powerplant is available in higher trim level 406s - GLXs - it is expected that the 90bhp unit will be available in higher 306 trim levels.

Fleet NewsNet understands that, just as with the 406, there will be no price rise over the outgoing models. The 90bhp engine will also appear soon in the 206. At the show the new engine was displayed in a stylised 306 estate, intended to demonstrate the versatility of the 306 line-up.