Probably the best diesel engine that PSA ever made was the 8 valve 2.0. Hdi, they were used in Peugeots and Citroens up until about 2004, the have no DPF and are practically bombproof.
I have owned various Peugeot diesels, starting with a 1990 205 Dturbo - the famous XUD 1769cc - followed by a couple of 306s with the larger 1905cc version. Then a 306 with the 2-litre HDi engine (one of the earliest examples) which I kept for 7 years. Finally a 207SW with the 1.6 HDi which seems to cause so much aggro, tho mine was/is early enough to have no DPF, probably a plus. That has been with me for 13 years.
All these cars have behaved impeccably for me, so from where I sit these gloomy tales look like a myth. My explanation is that Peugeot's recommended oil-change intervals were too long; I have cut them from 12K miles to 8K or less, and the 207 engine has never given me any cause for criticism. So, as is often said, when buying a used car, avoiding a lemon comes down to how the car has been maintained.
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