I did 100,000 very happy miles in my old 306 XSi and loved every single one of them. Like an idiot, I assumed the 307 would be as good, so when the company car choice came around, I ticked the box without even thinking about it.
Next to the 306 it's like driving a tank. Where the 306 felt lithe and agile, the 307 feels fat and ponderous. I have no complaints about performance though. Surprisingly the (same) 2.0 engine gives as good performance as it did in the 306, and manages to feel sweeter and more refined when extended. But the steering, handling and brakes feel like a backwards step of 10 years rather than representing progress in any way, shape or form.
There have been problems too. In 100,000 miles the 306 needed only routine servicing, some attention to the airbag wiring, and the idle control valve. In less than a quarter of that mileage, the 307 has broken down twice and suffered a multitude of stupid faults which the dealer seems powerless to even diagnose properly, let alone fix. And I can't believe brakes which try to make you headbutt the windscreen when you so much as brush them are "OK". Ever since the 205, Peugeot have been experts at making the major controls on their cars "feel" right, so I can't believe they could get something this fundamental so wrong. That said, the steering is overassisted too.
If they sorted the reliability out, it would be a decent enough car. Roomy, practical, comfy and with every toy you're likely to need. But it's neither as reliable, or, crucially, as much fun to drive as the 306. If you're looking for a totally sensible, practical family hatch, I'd recommend it (with the aforementioned reservations about reliability). If, like me, you want a 306 replacement, don't waste your time with this car. It's inferior in almost every respect. Ford are now the "enthusiasts" choice in this sector. Who'd have guessed that one 10 years ago?
Sort it out, Peugeot!