The Peugeot 304, presented in 1970, was a development of the 204. Larger and more spacious than the 204, this car was very successful in sales and was also available in coupé, break and cabrio configuration. At the time of the release of the 304, Peugeot was in second place in the French constructors' classification, behind Renault. These two brands took advantage of their favorable position to strike an agreement that led to the development of the PRV engine, in which Volvo also participated.