The Peugeot 107 has always had a bit of a big mouth look, something that is even more pronounced for 2009 thanks to a design refresh. Most of the visual changes are forward of the firewall and the nose now looks more distinct from its Citroën C1 sibling (also a mouth-breather). At 11.25 ft long the 107 remains one of the smallest cars on the road. As would be expected from such a small car, the 107 gets great fuel efficiency, with the 1.2L diesel getting a combined rating of 57.4 mpg (U.S.) while the 1.0L gas engine manages 52.3 mpg with a manual gearbox or 51.1 mpg with an automatic. Peugeot has improved the refinement with extra sound insulation. Unlike the smaller Smart ForTwo, the Peugeot nominally seats four, although the second row will definitely be a tight squeeze.


[Source: Peugeot]

Peugeot 107

The British economy is struggling a bit right now thanks to the same sudden realization that a lot of people got unaffordable mortgages in recent years, just like we are experiencing here in the U.S. Combining that with the same rising fuel prices that everyone else is suffering and the latest changes to the emissions-based London Congestion tax, demand for small low emissions cars is on the rise. Diesel-heavy Peugeot appears to be a beneficiary of that market shift in the UK right now. Their smallest model, the 107, which is rated at just 109g/km of CO₂ saw a sales jump of sixteen percent in the first quarter of this year. Having a CO₂ rating of less than 120g/km allows drivers of the 107 to drive into central London without having to pay a congestion charge. While that benefits drivers financially and certainly reduces CO₂ emissions relative to what it might be without any charge, if everyone shifts to these types of cars it won't actually do much to reduce congestion. Peugeot's diesel-powered vans also performed well in the marketplace with a jump of 4.1 percent.

[Source: Peugeot UK]

Peugeot 107 near Ann Arbor, click for high-res gallery

For the past six months, I've been seeing several Peugeot 107s on the road in the area near my office and home. At first I speculated that maybe Peugeot might be plotting a return to the US market at the entry level. Given the low value of the US dollar of the against the Euro right now and for the foreseeable future, it doesn't seem like it would make a lot of sense for PSA (Peugeot's parent company) to return with a car like the 107 that would have slim margins at best.

It turns out that I missed a couple of stories relating to the 107 over the past year. I knew that the 107 had a Citroen-badged twin dubbed the C1. However, the C1/107 are built in a plant in the Czech Republic in a joint venture between PSA and Toyota. Toyota sells a variant with slightly different styling in Europe as the Aygo. Last September it was reported that Toyota was developing a Smart competitor named the Aygo, for possible US introduction by 2008.

Toyota has a US Technical Center on the eastern edge of Ann Arbor about two miles from where I see the 107s on an almost daily basis now, heading in the direction of the Tech Center. Is it possible that Toyota is using the Peugeot 107 variant for testing here to throw people off the track without having to resort to lots of camo? Is this the new entry level Toyota below the Yaris? Only time and Toyota will tell. In the meantime, the current Aygo is available with a 1.0L gas three cylinder good for 50hp, or a 1.4L 54hp diesel four cylinder. The diesel is rated at 4.1L/100km (57.4mpg).

Related

• Peugeot coming back to US market at the low end?
• Update on the Peugeot 107 in North America
• Spy Photos: Peugeot 107 in Michigan redux

Click on the photo for a gallery of high-res shots of the Peugeot 107 in Ann Arbor.

A few months back I spotted several Peugeot 107s with manufacturer plates tooling around a few miles from my office. Since then I've seen them on several occasions but never when I had a camera handy. However, in the last few days another one has turned up on two separate at a location about five miles from the EPA national emissions testing lab and heading in that direction. The photos aren't great, after all it's hard to shoot from a moving car. Let the speculation begin.