Along with the facelifted version of the 306 range, Peugeot also introduced a new body version for its small-segment contender: the station wagon.
The 306 ranked in the top ten best-selling vehicles in the UK since 1994, so the refreshed version should keep those selling figures up. It did, but only until the end of 1998. One of its problems was the trunk space, and that's why Peugeot tried to fix that with a station wagon version.
The facelifted version featured different headlights, with rounded edges and an angry look that matched the front fascia of the successful Peugeot 406. The raked windshield and the clean, rounded lines were a step forward from its predecessor. Peugeot introduced a new bumper with a "smiley face" lower grille and encased fog lights. Behind the rear doors, which were identical to those installed on the five-door hatchback and the sedan, the carmaker installed a wide window. Thanks to the darkened D-pillars, the carmaker created the image of a wrapped-around glass area. At the back, the tailgate was flanked by new taillights with a vertical, rounded shape.
Inside, the designers sweetened the lines with rounded edges instead of angular lines. On the center stack, Peugeot installed the HVAC controls and the audio system. It didn't seem like its designer broke a sweat to make a completely new design. The car's most significant advantage was the 442 liters (15.6 cu-ft) trunk space. With the rear seats folded down, that volume increased to an astonishing 1,512 liters (53.4 cu-ft).
There was a choice of seven engines available under the hood: five were with gasoline, and three were diesel. Depending on the trim level and powerplant, the carmaker offered a five-speed manual transmission as standard or a four-speed automatic.