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Peugeot enters the Supermini market

Peugeot announces all-new three-door and five-door models. The 208 will compete with the Ford Fiesta, Toyota Yaris, and VW Polo.

Peugeot will launch its new model in the Supermini or B segment. The new car will be available in 2 distinct body styles: 3- and 5-door.

Peugeot is capitalizing on the familiar "renew, reuse, recycle" campaign by adding "regenerate." The French car maker will debut the all-new 208 in Europe in the spring of 2012, replacing the 206 and 207 models.

The automaker also introduced a new range of three-cylinder engines promising fuel economy of 83.1 mpg (2.83 l/100km) using the diesel engines. The 1.0- and 1.2-liter VTi gas engines, also available, offer an estimated 65.7 mpg (3.58 l/100km).

The 208 has been completely redesigned. The controls are positioned around a small steering wheel, combined with an elevated instrument panel with a large touch screen.

A completely new, and more ergonomic, interior allows for more rear legroom and more luggage space than in the 207.

The 208 will compete with the Ford Fiesta, Toyota Yaris, and Volkswagen Polo when it's released next year.