Layout and Running Gear
204 engines were aluminium and transversely mounted which increased available passenger space within a given wheelbase: the 204 was the first production Peugeot to feature this format which later would become normal for small and medium-sized front-wheel-drive Peugeot passenger cars.
The engine had a distinctive design; the gearbox and differential were located directly below the engine block. This design helped Peugeot produce its first front-wheel-drive car.
The 204 was also the first Peugeot to be equipped with disc brakes, albeit only on the front wheels.
The car proved to have good handling, decent performance, and excellent fuel economy.
Read more about this topic: Peugeot 204
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