If every car could ride, steer and handle like a Peugeot there would be many more satisfied drivers in our world.

That's a mighty big claim. But it is true. Peugeot mastered the art of platform (chassis) design and construction long ago.

Even a station wagon, such as the Peugeot 307 Touring XSE HDi, which we are covering on this occasion, has that unique pleasantness that is part of every Peugeot.

Our test car, the current Peugeot 307 Touring XSE HDi, was fitted with the 2.0 litre diesel and matched to a 6-speed manual transmission.

This makes for quite a pleasing package. The 307 Touring, at 4.428 metres long, is at the larger end of the small car class. It is longer than the 4,211 mm long 307 hatchback, yet it is a perfect size for many folks who require a small car with the flexibility provided by a wagon.

The interior is large enough for 4 adults to be seated in comfort and with a slightly longer wheelbase than the hatchback (2,708 mm for the Touring, 2,608 mm for the hatch) the 307 Touring makes comfort perfectly understandable. Load space is much better than the hatchback, as expected, and this demonstrates clearly why a need exists for small wagons. There must be countless reasons for acquiring a small wagon, from either a business or personal perspective.

The Peugeot 307 Touring will be replaced this year by the 308 Touring. The 308 hatchbacks are coming onto the Australian market as we present this report. The new 308 Touring will make its debut appearance at the Geneva Motor Show, in Switzerland, next week. The new model will be released in Europe later in the year and an Australian arrival is anticipated late this year.

But back to the Peugeot 307 Touring.

The 307 Touring is available, locally, with a 2.0 litre petrol engine or with one of two turbocharged diesel engines. The diesels are a 1.6 litre or 2.0 litre unit. The 1.6 litre diesel comes with the 307 Touring XS HDi and is available with a 5-speed manual transmission only. It is priced from a competitive $31,690 (RRP). The 2.0 litre diesel is fitted to the 307 Touring XSE and comes standard with a 6-speed manual transmission (as tested) and it is priced from a highly competitive $34,290 (RRP). A six-speed auto is optional for $2,200 on the Touring XSE.

Other options for the Peugeot 307 Touring are metallic paint ($700), rear parking assistance ($450) and a 5-disc in-dash CD changer ($590).

The 307 Touring XSE has quite a few features which make it a highly desirable wagon. It comes standard with Electronic Stability Programme (ESP), Traction Control, Auto-dipping rear view mirror, Automatic rain-sensing front wipers, Automatic headlight illumination system and Headlight delay security illumination, in addition to the 2.0 litre engine. These features easily justify the price of the Peugeot 307 Touring XSE.

All 307 Tourings come with alloy wheels, a full-size spare wheel, 4-wheel disc brakes, ABS with Electronic Brake Force Distribution, Emergency Brake Assist, Speed sensitive power steering, Driver and front passenger airbags, Front side airbags, Full length curtain airbags, Cruise control and speed limiter, Remote control central locking, Electric windows with one touch and anti-pinch feature, Height and reach adjustable steering wheel, Electrically operated and heated door mirrors, Tinted glass, Athermic (heat reflective) windscreen, Blaupunkt RD4 six speaker radio/CD player, Air conditioning - dual zone climate control, Air conditioned glove box, Pollen filter, Odour reducing charcoal filter and so much more.

From our driving experience of the Peugeot 307 Touring XSE HDi, over a distance of some 755 kms, we can say this car delighted each of us with the ease of control it offers drivers. Additionally, the traditional ride and handling qualities are always appreciated. Further, Peugeot steering and braking abilities are first class. The comfortable seating makes riding in the 307 Touring a joy. But, with European manufacturers owning all the rights to eco-friendly motoring, one cannot help but be highly impressed with the miserly fuel consumption of the outstanding Peugeot 2.0 litre diesel. Looking at the Peugeot provided figures, on the city cycle, the 307 Touring XSE HDi uses 7.3 litres/100 kms, but get this, on the combined cycle the test car should achieve a consumption of just 5.6 litres per 100 kms. On the highway cycle it is an amazing 4.7 litres per 100 kms. There can be little wonder why Peugeot is selling so many diesels.

But that is not all. In the now important CO2 emision testing, the test car was rated at a very commendable 148 grammes/kilometre. This low pollution rating guarantees respect.

However, not all is perfect with the Peugeot. We would have liked to have seen a driver's footrest included. And during our drive time we experienced a, shall we say, 'crunch' on numerous occasions as we shifted into 4th gear. But we certainly appreciated the deep and wide front door pockets, the luggage cover and the automatic door locks.

The Peugeot 307 Touring is a nice looking wagon and it possesses many fine qualities. Exceptional fuel economy and the quality ride are just a small part of the bigger picture.

This is one vehicle which provides many reasons why you should acquire one. It is a decent size and it is completely enjoyable from every aspect!