The first problem encountered with my Xsara was the engine management lamp. It turns on in the morning when I start the air conditioner while the engine is still cold. Then came minor problems such as the air vents on the dashboard was pushed in, pocket behind the driver seat pulled out, squeaky brakes, radio lost FM reception, and just now, the signal wand gets stuck on the right indicator especially on cold winter mornings. Crickey! All these happened with just 16,000 kms on the clock. This is my first (and last) French car. Mind you, I only experience problems with my Japanese cars when they've traveled over 100,000 km.
The only thing that makes me happy to own a Xsara is its ability to take on sharp corners. Handling is superb for a small hatch and it drives like a larger sedan. Its suspension is a bit hard, but I like it that way. Steering is not overly assisted and is very accurate. Its 1.6 li engine lacks flair, but is competent - a power output comparable to the Focus 1.8 li. Its fuel consumption is not exceptional. Runs on 10 li per 100km (suburb driving), just like any other 1.6 car.
I am the original writer and I'd just like to give an update on my Xsara. After all faults were fixed by the dealer, with just 15,000 km, I'm glad to say that I'm now quite happy with my Xsara, now reaching the 40K mark. The first 10K was very disappointing. I had the dealer change the indicator stalk, radiator hose, rubber door seal, CD player, and engine mount. The dealer though was very cooperative. At 10K, I also find the car too sluggish off the mark, but now it's very perky and quick for a 1.6 auto, comparable even to most 1.8's. I still like the Xsara's handling capabilities, the best for its class. Once we made a mistake of filling it with 91 ULP which caused the engine management to light up. A couple of Optimax full tanks solved the problem. I hope no more surprises to come, but then the car is already 3.5 y.o, I expect more minor faults which I guess is common even for Japanese cars.