The 204 was the first Peugeot with front-wheel drive. Though the engine was transversely mounted, there was no clear separation between transmission and engine, as is usual today. The engine was arranged midways, forming a unit with the transmission (behind it). They shared the same lubricating oil circulation.
The car entered the market with separate trunk (three box design). The station-wagon made its introduction one year later. Due to the longer wheelbase and missing rear-axle drive, the interior of the car appeared half a class higher in terms of space. The engine was gratifyingly modern and had the bright sound that is usual for aluminum engines. The sound was slightly disturbing when experiencing the high possible speeds, though.
Technically, the radiator fan was interesting, as it was driven from the left engine side through a V-belt, although the cooler was arranged concentric in the engine compartment. Two additional rolls twisted the V-belt, allowing a corner-wise drive. Nevertheless, the ventilating fan was electrically steered. Electric motors were still expensive at that time.
The suspension was interesting as it did not make use of any stabilizers. This featured a relatively comfortable setup with a relatively strong body rolling in curves. The accessible oblique angles were huge under these circumstances. The relatively soft springs matched the quality of the French streets at that time. Even distant journeys had to be covered on maximally three-lane national roads, mostly reconstructed country roads. There were just 200 kms of highway. From 1968, the 204 could be ordered with the smallest available diesel engine in the world. It boosted its success further. Only the purchase price prevented even higher sales.