Peugeot intends to make a true successor to one of the great legends of the European hot hatchback scene in the 1980s and 1990s -- the light, fast, sweet-handling, and pretty 205GTI.The company's subsequent hot hatches have all been flabbier. Engineers and designers recognize it and wish to counter VW's forthcoming supermini, which will be lighter and more compact than the car it replaces.

The hottest Pug' will use the codeveloped engine seen in the Mini Cooper S JCW, a 1.6-liter turbo making about 200 horsepower.

Under a new design chief, Peugeot's style has been getting more elegant and less baroque, both in its concepts and production cars.

Peugeot's race cars lost out by seconds to the lone surviving Audi at this year's Le Mans, though the brand has beaten Audi 13 out of 15 times in the past two years-the two misses were the French company's home race. The company also competes in rallies.

Peugeot is eager to be seen as a sporting brand again, and its RCZ compact coupe is a success. A proper new GTI should cement it.