by David Finlay (13 Jan 06)

The importance to Peugeot of the new 207, which arrives in the UK this summer, can hardly be overstated. As with the other French manufacturers, Peugeot's reputation rests largely on its ability to produce popular small cars, something it has done with great success over the years. Back in the 1980s, the 205 gave a healthy blast of fresh air to an otherwise rather old-fashioned range of cars, and the 206 which replaced it eventually became the company's most popular model ever, with global sales of 5.4 million units.

That's quite a feat to match, but the 207 also appears at a difficult time for Peugeot. According to figures issued recently by the Society of Motor Manufacturers and Traders (see feature), sales in this country last year were 14% down on the 2004 result. Part of the 207's job will be to help its maker claw back lost ground.

It's fair to say that Peugeot isn't making life easy for itself. Once the 207 goes on sale here, it will be one of four cars the company is attempting to market in the B segment. One of these is the 206, which will continue to be sold alongside the next-generation model; Peugeot says the new car "will succeed but not replace the 206", but that's a familiar trick which both Peugeot and its sister company Citroen have used before. The chances of the 206 lasting as long as the 207, at least in this country, are minimal.

That still leaves the 107 - effectively the same car as the Citroen C1 and the Toyota Aygo - and the radical sliding-door 1007. It's all looking a bit tight in there, though Peugeot insists that the B segment has enough customers to justify producing so many similar-sized models.

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