The 307 WRC arrived with the weight of expectation that came from following the 206 WRC, which had delivered multiple manufacturers' championship titles for Peugeot. The new car was built to the World Rally Car regulations of the era, sharing its basic architecture with the production 307 hatchback while featuring the heavily modified four-wheel-drive drivetrain, turbocharged engine, and reinforced structure required for world-championship competition.
From the outset the car was troubled by transmission problems that persisted across both seasons. Additionally, the handling characteristics of the 307 WRC were reported as not well-matched to the driving styles of the works team's lead drivers, creating an underlying performance deficit that the engineering effort never fully resolved.
Peugeot entered 2004 with Marcus Grönholm as their primary driver. The 307 WRC showed pace in certain conditions and took seven podium finishes across the season, including a maiden victory at Rally Finland — the high-speed gravel event in Grönholm's home country of Finland where he had previously excelled. However, the transmission difficulties and handling issues prevented Peugeot from mounting a sustained championship challenge. Grönholm finished fifth in the drivers' standings and Peugeot placed fourth in the manufacturers' championship, well short of the standards the 206 WRC had set.
The second and final factory season produced a far more competitive showing. Peugeot fielded Grönholm alongside Estonian driver Markko Märtin, and the team emerged as a genuine manufacturers' championship contender. After ten rounds, Peugeot led the manufacturers' standings, with the title still firmly within reach.
The season was irrevocably altered on 18 September 2005 during the Wales Rally of Great Britain. On stage 15, Märtin lost control of his 307 WRC and the car struck a tree. Co-driver Michael Park was killed instantly. It was the first fatality at a World Rally Championship event since Rodger Freeth died in 1993. Park's death led directly to Märtin's retirement from rallying, and Peugeot's title challenge unravelled in the aftermath.
Grönholm continued to the end of the season and secured victories at Rally Finland and Rally Japan, adding six further podium finishes. Märtin had taken four podiums before his withdrawal. Grönholm ultimately finished third in the drivers' championship, tied on points with second-placed Petter Solberg. Peugeot finished second in the manufacturers' championship, behind Citroën.
At the end of 2005, PSA — the parent group controlling both Peugeot and Citroën — decided to withdraw its factory teams from top-level WRC competition. Both Peugeot Sport and the Citroën Total World Rally Team were stood down from the works programme.
Following the PSA withdrawal, Bozian Racing, a seasoned Peugeot preparation firm with long experience of the French manufacturer's rally cars, took over operation of the WRC-specification 307s under the banner of the OMV Peugeot Norway World Rally Team. The team named Manfred Stohl and Henning Solberg as drivers for the 2006 season.
The privateer campaign proved more competitive than many expected. Stohl finished fourth overall in the drivers' championship standings, and the 307 WRC claimed seven podiums across the season through privateer entries — a strong return from a car no longer supported by factory resources.
Over its factory and privateer career, the Peugeot 307 WRC recorded three World Rally Championship victories and 26 podium finishes. All three victories were taken by Marcus Grönholm: Rally Finland in 2004, Rally Finland in 2005, and Rally Japan in 2005. The car never challenged for a championship title despite producing competitive performances in specific events, and its factory life ended earlier than planned following the fatal Wales Rally GB accident and PSA's subsequent strategic withdrawal.
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