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Peugeot has signed an agreement to expand its production relationship with the NAZA Group in Malaysia. NAZA started assembling the previous generation B-segment 206 hatchback in 2006 and will be adding a sedan version of the current 207 late this year. In the second quarter of 2011, Peugeot and NAZA will add a sedan version of the larger C-segment 308 to the production schedule.

About a month before the Geneva Motor Show, Peugeot announced a hyper-miling competition for up to 72 drivers to see how little fuel they could use getting from Paris to Geneva. After evaluating all the written entries, Peugeot selected the drivers and set them up last weekend in four different diesel-powered models.

Peugeot has put out the call to European drivers to sign up for its upcoming Eco Cup where they will have the chance to prove how efficiently they can drive. The Eco Cup is a two-day, 622-mile run from Paris, France to Geneva, Switzerland in a fleet of 72 new diesel-powered Peugeots.

The new year means it's time for Peugeot to update its 1.6-liter HDI diesel engine and adapt it for the Euro V specifications. The new engine gets two additional horsepower added to the current 110 hp and its torque is increased by 12.5 percent. The existing overboost function increases available torque up to 270 Nm (200 pound-feet) when the gas pedal is pressed. The improvements come from a revised combustion chamber that lowers the compression ratio and reduces emissions. The new engine also c

Peugeot 308 RC Z pre-production teasers – Click above for high-res image gallery

Judging by this latest round of spy shots taken by shooters in Spain, Peugeot's 308 RC Z is almost ready to take on the Audi TT which it so openly apes.

Citroën and Peugeot have been putting out small, efficient vehicles for many years. At this weekend's H2Roma, the PSA group will talk about the green vehicles it hopes to bring to market in the future. H2Roma is an annual sustainable mobility and the PSA group's press release announcing its participation (pasted in full after the jump) gives us a compact rundown on how the companies will make future cars even cleaner. Check out the list:

While police agencies in North America have always favored large, high-powered sedans for use as patrol cars, the rest of the world sees things differently. The fact that most of the rest of the world has always had much higher fuel prices has certainly played a part in this. Police officers in Europe seem to get along fine with compact or mid-sized cars like the Opel Vectra and the Peugeot 307. Peugeot's latest entry in the segment is the 308 HDi 90. The 308s are being prepared by Peugeot's Spe

Here in the U.S., hypermiling has largely been the province of hybrid drivers. That doesn't mean that only hybrid drivers can take advantage of those driving strategies. When last we heard from Helen and John Taylor, the British couple had just completed a run from Britain to Poland in a pair of diesel-powered Jeeps at 55-56mpg. After that jaunt they headed to Australia for another hypermiling adventure. This time around they used a Peugeot 308 HDi 110. The pair drove the C-class sized hatchback

Click the pic above to see a hi-res gallery of the Peugeot 308 GT THP 175

Click the image above for hi-res shots of the Peugeot 308SW

The frugal 1.6-liter diesel Peugeot 308 (and the very frugal diesel hybrid version) get some of their low numbers to Michelin's new low-rolling resistance tires, called Energy Saver. According to AN Europe, the tires themselves don't subtract too many grams of CO2 emitted for each kilometer driven (just four grams) or liters of fuel required to move the car (just 0.2 per 100 kilometers), but take the four rubber circles in context with other fuel economy measures in the 308 line (weight reduct

It doesn't yet have a hybrid powertrain that will give it 70+mpg (but that option is coming), but Peugot's new 308 does have a lot of options in the engine bay. The new 308, coming to the UK in September, has ten powerplant choices, with the lightest emitter sending out just 120 g/km of CO2. This aerodynamic little hatchback has got a below-average drag coefficient of just 0.29.

The new C-Class Peugeot 308 will go on sale in early 2008 and AutoExpress is reporting that a diesel hybrid version will be available about six months later. The Focus sized 308 will have a 1.6L turbodiesel mated up to an electric motor and battery pack. There's no word on what kind of battery will be used, but start-stop capability and regenerative braking will be in place.

Diesel engines dominate the European mass market, in large part because of the high cost of fuel. Gasoline engine hybrids haven't sold as well on the continent, so now Peugeot is planning to introduce the first diesel hybrid passenger car. The lower mid-sized 308 will unveiled as a replacement for the current 307, at the Frankfurt Motor Show in September, and a diesel-hybrid variant is expected to see the light of day by the end of 2007. Although this is a more expensive option, it should be mor