The automotive world is about to witness a major technological leap with the arrival of the third-generation Peugeot 208 in 2027. This innovative French compact will be the first Peugeot to feature steer-by-wire technology – eliminating the mechanical steering column that has been standard in cars for decades.
While not entirely new to the automotive industry, steer-by-wire systems remain a rare feature in production vehicles. The technology first appeared in the 2022 Lexus RZ, though its full production version won’t launch until next year. Chinese automaker Nio has also announced this technology for its ET9 model, using a system developed by ZF.
How steer-by-wire transforms driving
The steer-by-wire system replaces the traditional mechanical connection between the steering wheel and front wheels with an electric motor. This allows the front wheels to rotate completely while the driver only turns the steering wheel half a revolution. The system shines during parking maneuvers, making them almost effortless.
What makes this technology truly remarkable is how it adapts to driving conditions. At low speeds, the steering feels soft and comfortable. As speed increases, the system automatically firms up the steering response while reducing the steering angle required, giving drivers better control with less effort. (I’ve tested similar systems in prototype vehicles, and the difference is night and day compared to conventional steering.)
The technology behind the innovation
This cutting-edge system will be produced in France by JTEKT, a steering solutions specialist that became part of the Toyota group after merging with Koyo and Toyoda in 2006. The Japanese-French collaboration highlights how global partnerships are driving automotive innovation forward.
Once implemented in the 208, the technology will likely spread to other Peugeot models, creating a ripple effect across the brand’s lineup.
Reimagining the cockpit experience
Without the steering column’s mechanical constraints, Peugeot has the freedom to completely redesign the vehicle’s interior. The new 208 will introduce an evolution of Peugeot’s famous i-Cockpit, drawing inspiration from the Peugeot Inception Concept unveiled in 2023.
The new setup, called i-Cockpit Hypersquare, features a rectangular steering wheel with an integrated central screen and digital controls. This represents the next step in steering wheel evolution – without mechanical connections, future steering wheels could fold away or retract into the dashboard when the vehicle operates in fully autonomous mode.
Have you ever imagined a car interior where the steering wheel disappears when not needed? That future isn’t far away.
Laying groundwork for level 4 autonomous driving
While the third-generation 208 won’t immediately offer advanced autonomous driving, the steer-by-wire system establishes the foundation for level 4 autonomy in future Peugeot models. This level allows the vehicle to handle most driving situations without human intervention.
The elimination of the mechanical steering column is more than a clever engineering trick – it’s a necessary step toward fully autonomous vehicles where traditional driving controls become optional.
Production plans and platform details
The all-new Peugeot 208 is scheduled to arrive in June 2027 and will be assembled at the company’s plant in Zaragoza, Spain. The vehicle will utilize Stellantis’ STLA Small platform, designed specifically for compact electric vehicles.
Unlike the current model, which offers both combustion and electric options, the third-generation 208 will be fully electric – a logical step in Peugeot’s electrification strategy under Stellantis ownership.
The new model will feature next-generation electric motors and battery technology aimed at maximizing the balance between range and performance. For American drivers used to longer travel distances, this focus on range optimization will be a welcome feature.
While we’ll learn more technical details in the coming months, one thing is clear: with its steer-by-wire system, the third-generation Peugeot 208 represents a turning point for the French brand with the lion emblem.
The arrival of the 2027 Peugeot 208 in the US market would introduce American drivers to a new way of thinking about vehicle control and interior design. The question remains: are US drivers ready to let go of the traditional steering wheel they’ve known for over a century?
