First rate handling and ride, sweet sohc engine, handsome styling, decent cabin. A very dynamical hatchback. 

After the revision in 1997, the comment became : 

First rate ride, deteriorated handling although still class-leading, harsh and noisy 16 valves engine, handsome styling and decent cabin improved slightly. An unsuccessful update. 

Strangely, Peugeot had done quite a lot in the update but most of them introduced counter effects - firstly, replacing the long-serving 8 valves 1.8 litres and 2.0 litres units with 16 valves versions seems to be a modernised move, but the 4-valvers was proved to be too harsh and too noisy, they are peaky, too. Now drive the 306 at low speed becomes lack of torque, at high speed becomes noisy. Oh yes, perhaps Peugeot wants to remind us that it builds Formula One racing engine. 

Secondly, Peugeot reworked the suspensions springs, dampers and bushing, these improved little bit refinement but in the price of body control and steering. Obviously, engineers did not spend too much time in road testing. Luckily, the original car handled so remarkable that such deterioration did not cost it the class-leading status. 

Finally, the slightly exterior and interior styling changes are good news. Now, because of the update Peugeot 306 is no longer the best choice in this category. Although it is still (just) leading the dynamic aspect, poor refinement and the arise of competitors such as Volkswagen Golf IV make it actually less competitive. Moreover, the deterioration created really bad image to automotive journalists.
 

King of GTI : 306 GTi

The power train becomes nothing when compare with the chassis, which provides untouchable handling excellence. Corner and then corner, it displays supreme body control with extremely high limit. Responsive and communicative steering give you the highest confidence, knowing your car is 100% under control. Which GTI could be more exciting?   

In fact, it does not need any double wishbones or multi-link suspensions like Japanese competitors, it need only strut in front and torsion beam in rear plus the traditional famous tuning technique. Best of all, supple ride means there is no compromise in handling and riding - this is a real French car !  

Of course, 306GTi is a beautiful hatchback, many regard it as the best-looking GTi. Being a perfect car, it deserves succeeding 205GTi as the "King of GTI".