Peugeot 206 hatchback (T1;TU3/TU5 1.4/1.6L L4;manuelle 5 vitesses;2009)
During the early 1990s, Peugeot decided not to directly replace the Peugeot 205, citing the reason that superminis were no longer profitable or worthwhile. Instead, Peugeot followed a unique strategy and decided that its new, smaller, supermini, the Peugeot 106 (launched in 1991), would take sales from the lower end of the 205 range while the lowest models of the Peugeot 306 range, launched in 1993 to replace the Peugeot 309, would take sales from the top-end 205s. Between the 106 and 306, Peugeot hoped that the 205 would not need to be replaced, and could be phased out slowly, while customers who would normally plump for the 205 would continue to have a choice with either a smaller or larger car. This strategy did not work. With the 205 phased out, other superminis like the Ford Fiesta and Volkswagen Polo continued to sell well and increased in popularity, and without a direct competitor to these cars Peugeot was losing sales fast.[citation needed] A new supermini was required, and the 206 was launched in 1999 as a somewhat belated replacement for the 205.
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