One-time master of diesel...

One-time master of diesel Peugeot is cleaning up its act – with this new 308 Hybride HDi. The French firm will unveil the eco-friendly hatchback at next week’s Frankfurt Motor Show. And with thrifty credentials such as a frugal 83mpg and CO2 emissions of only 90g/km, it’s sure to be a real draw.

The company says the newcomer is unlikely to hit showrooms until 2010. However, when it does, the engine’s output means the Hybride HDi will be exempt from road tax, and, under new plans, congestion charging schemes, too.

Peugeot engineers have coupled a 110bhp 1.6-litre HDi diesel with a 22bhp electric motor to give the hatchback a combined 132bhp – comparable with the 136bhp 2.0-litre diesel. What’s more, the Hybride HDi is 38 per cent cleaner than the standard 1.6-litre diesel. With an electric-only mode, an electronically controlled six-speed gearbox and regenerative braking, it should be a hit with eco-minded families.

The fact that the regular 308 has just been rated as a five-star car for occupant protection in Euro NCAP crash tests, with four and three stars for child and pedestrian protection respect-ively, should seal its appeal. While no price has been announced, the firm says that it will be competitive. “To keep costs down, we’ve used as many existing components as possible,” its spokesman said. This should enable the 308 to undercut rivals such as the Toyota Prius and Honda Civic IMA.