What’s new? Peugeot has replaced its 2.0-litre HDi engine with a new all-aluminium 1.6-litre turbodiesel unit, developed from the HDi 110bhp version. Power remains the same at 90bhp, but torque has been increased to 159lb ft, and it’s available at 1750rpm, instead of 1900rpm. The new motor slots into the manufacturer’s regular model range, and is available on hatchbacks, estates and the SW.What’s it like? On the road, the new engine pulls strongly enough, even if the front wheels struggle to cope with the increased torque at lower revs. The lighter lump has a positive effect on handling, too, but the 307’s steering is still a little on the vague side to make it feel nimble. Inside, the Peugeot’s appointments are now looking increasingly dated compared to those of rivals such as the Ford Focus and the Honda Civic.Should I buy one? While it is an improvement, the new engine doesn’t bring the 307 back up to the level of its class-leading rivals. If you do still find it an attractive package, haggle hard.