Peugeot prices new 308 below the VW Golf

Peugeot will sell the new 308 compact car at a price below the European compact segment leader, the Volkswagen Golf, when it begins deliveries at the end of September.

Peugeot says the 308's front is dominated by a new interpretation of the brand's 'floating' front grille, and by the strong lighting signature.

PSA/Peugeot-Citroen is counting on models such as the new-generation 308 and the new Citroen C4 Picasso minivan to boost falling vehicle sales in Europe.

Peugeot said prices for the 308 will start at 16,450 euros in Germany for a gasoline model compared with the Golf's 17,175 euros. The Opel Astra, another rival in the key compact segment, begins at 16,770 euros, while the Ford Focus starts at 16,450 euros.

Peugeot says 308 diesel variants will start from 19,550 euros.

The current 308 is the brand's No. 2 best-seller in Europe after the 208/207 subcompacts, according to market researchers JATO Dynamics. 308 sales slipped 34 percent to 48,641 in the first half, making the model No. 13 in the compact sales ranking in Europe (see table below).

The 308 is designed to help Peugeot in its ambition to move upscale. The initial design brief for the model had the "highest levels of quality at its core," Peugeot says. Details such as high quality interior materials and the satin chrome or gloss black detailing "add to the feeling of sophistication and maturity in the car's design," Peugeot said in a statement.

Peugeot describes the 308's new look as 'classy and sophisticated.'

The 308 will debut at the Frankfurt auto show in September but Peugeot is already taking orders for the model.

Customers can choose between three gasoline and two diesel engines with the most fuel efficient offering CO2 emissions of 85 grams per km.

The 308 and the Citroen C4 Picasso are the first two models undepinned by PSA's new Efficient Modular Platform (EMP2) architecture that helps cut the 308's weight by about 140kg compared with the current model.

PSA sales in the EU and EFTA markets fell 13 percent in the first half to 716,739 vehicles in a total market down 7 percent, according to data from the industry body ACEA. Peugeot brand sales were down 11 percent while Citroen sales dropped by 16 percent.

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