The Peugeot 306 underwent some serious modifications in 1997, with the new model being developed as the Phase II 306.
The bodywork featured more roundish lines, including the front bumper, grille and headlights-design. As compared to the previous generation 306 Coupe Cabrio, the new model was offered with a choice of 4 engines, including a new 1.8L 16 valves unit (with the 2.0L unit also gaining 16 valves for 1997). The car featured several interior changes in 1998, including a different center console and a restyled steering wheel. The model was discontinued in 2003.