The 307 is Peugeot's second best-selling car after the evergreen 206, and considering that it was launched in 2001 (and promptly received the award of 2002 Car of the Year) it has dated quite well. However, since its inception, key rivals have been replaced by much more modern cars, so Peugeot made the sensible move of improving the whole 307 range this year. At the same time, the opportunity was taken to graft the new family look nose on, as pioneered by the 407. We attended the new 307 launch.

We'd seen the initial press images of the new-look 307, but cars always manage to look very different in the cold light of day, away from the lenses of a professional photographer. In the metal, the new 307 looks bolder and more modern than the outgoing model, but perhaps not as cohesive. The gaping front grille could well divide buyer opinion. The changes amount to a new larger plastic bumper incorporating a large single air intake and protruding 'over riders', integrating with a shorter aluminium bonnet. On either side is a larger headlamp, protruding further into the front wings. These changes have managed to help the 307 appear more compact, even as small as a 206 from some angles. All models, including the 307 CC, gain the new nose, though the coupe cabriolet does not receive minor changes to the rear lights as the rest of the range do, described as "chrome red"; a casual observer would be hard pushed to notice the difference.

The launch involved driving from Farnborough airport to a chateau north of Paris, with plenty of stop offs in between to swap cars and drivers. By day two we should have driven a good cross-section of the new 307 range. It is easy to forget that the range actually consists of five different body styles: three and five-door hatchbacks, Estate, SW and the four-seat CC. One of the bigger changes to the line-up is the introduction of a new range-topping model. The new car is tagged 'Feline', and takes the place of a would-be GTi, but without having to prove itself against the likes of the Golf GTi and Honda Civic Type-R, though with a price tag of £17,000 for the 3-door, it comes dangerously close to being compared to such strong opposition.

In France, the Feline name is perceived as being sporty, but I wonder if UK buyers will feel the same. Available as a three or five-door hatch, the Feline is fitted with the lively 2-litre engine with variable valve timing (as tested in the Peugeot 206 GTi 180), putting out 180bhp. The Feline also features as standard a fully trimmed leather interior, six-spoke 17-inch alloy wheels, a rear spoiler and chrome exhaust extension. Our first car of the trip was to be a five-door 307 Feline, in 'Mulberry' with a brown leather interior. The leather enhances the interior of the 307 no end, adding a real upmarket feel to the passengers' surroundings. Other high quality items such as the metal door handles and aluminium air vent surrounds seemed to stand out more in the leather, though they are actually unchanged from the previous 307. The Feline also features new white instrument dials (also on the XSi, and derived from the CC). On the left-hand drive car we tried, the markings on the dials are minimal, almost giving them the appearance of a concept car's dash, sporty and elegant.

All test cars at the launch were fitted with a full satnav and infotainment system, complete with a screen integrated into the base of the windscreen. Once you get used to the menu system, this is easy to use, though the buttons are perhaps a little small for the driver to use while on the move. What did impress was the system's speed of operation, being noticeably quick to respond to requests such as zooming in and out of maps. The new 307 features a state-of-the art CAN (Controller Area Network) system that essentially networks all the car's electronics and ensures it all works seamlessly together. Seated comfortably in the leather seats, we headed for the Channel Tunnel near Folkestone.

Apparently there are no chassis changes to the Feline model over the rest of the range, but on the motorway the ride felt distinctly choppy, even in comparison to the Sport version of the previous generation 307. It was not uncomfortable, just a little at odds with the luxurious interior, and may well be due to the low-profile tyres fitted as standard to the Feline. The plus side is ample grip and very little body roll. The exhaust note produced by the 2-litre engine adds to the sporty impression. This engine was designed to fit a GTi, and it shows, revving keenly and quickly. It is allied to the same five-speed manual gearbox as fitted to the 206 GTi, and to be honest this does not suit the car - the gear ratios are too short, with 80mph showing about 4000rpm. The Feline could really do with a sixth ratio, but sadly the six-speed manual fitted to the HDi models won't work with this engine. Pity.

Next car on our list was the 307 SW, fitted with the same HDi engine we tested earlier this year in the outgoing 307. On long and not particularly winding French roads, this powerplant is the perfect companion to the practical SW derivative. Thanks to an impressive torque output, it is possible to just stay in a higher gear than usual and not trouble the engine with unnecessary revving. Even overtaking manoeuvres rarely need anything lower than third gear. The six-speed manual 'box is a joy to use too, and allows the 307 to cruise along at relatively high speeds with very little audible engine noise.

The SW may just look like a 307 Estate with a cool panoramic glass roof, but it does have another few tricks up its sleeve. It shares the Estate's wheelbase (itself about 100mm longer than the hatch), but is a fraction longer and higher again. Along with the glass roof, the SW Is fitted with a more flexible interior, where the rear seats are actually three individual items, and can be placed to suit the load. For instance, our test car was set up almost to be a discreet limousine, with two of the seats located right at the back of the car (with room for a couple of laptop bags behind), and the third folded down in the centre acting as a table. This offered huge legroom. There is also the option to have two extra rear-facing seats right at the back, making the 307 SW a seven-seater. The SW is only £400 more than the Estate equivalent and it is well worth the premium. For some reason the Estate is not available with the 136bhp version of the HDi engine either.

Along with the new face, the other news for the CC variant is the fitment of the 136bhp HDi engine for the first time. For the two-hour drive back to Beauvais airport I was given the 'Neysha Blue' 307CC pictured here (one of the new range colours that is actually more turquoise than these shots show), fitted with this engine and in top-of-the range SE trim. The leather interior is £500 extra, but is well worth it, giving the interior of the 307CC a thoroughly upmarket ambience. Space in the rear is understandably compromised by the space needed for the folding roof, but children won't complain and adults will put up with it for shorter journeys. It was not surprising to hear that Peugeot's own market research concluded that the majority of CC buyers have another car in the household.

As with the hatchbacks, the facelift on the CC seems to shrink the car. It still looks a little awkward from some angles thanks to the relatively long front overhang, but then again the 307CC looks quite elegant with the roof up or from the rear three quarters. It is just as good to drive as its hatchback siblings, though pitted roads reveal less structural rigidity. This car is not a sports car after all, so it really should not be an issue for the target market. The downside of that secure folding roof is its weight; the CC weighs about the same as the 307 SW. The HDi engine makes light work of it though and the CC we drove never felt slow, with plenty of urge for overtaking (the CC features temporary overboost to 255lb.ft of torque) or rushing through the French countryside when running late for a flight...

The facelift has been successful, bringing the 307 up to date in appearance and specification. There will be further tough competition this year in the form of the new Honda Civic and the CC will have to fight its corner against the Astra TwinTop and folding hardtop cars from Ford and VW (due at Frankfurt next month). This iteration is unlikely to take a Car of the Year crown, but should ensure that sales in the UK continue to be strong.