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Just thought I'd post this as I'm sure it will happen to all Peugeot 307 HDI 1.4 owners eventually and it seems that most garages can't cure it and just keep replacing things at great cost.
I have had this problem for ages, and it just sort of creeps up on you.
Most of the time I drive on the flat, but going up a steep hill the other day, I realized when I was down to first gear, that it had become serious. It felt like the Turbo was not kicking in.
Talking to a friend, he suggested it might be the Mass air flow sensor, so I bought a tin of contact cleaner and I gave it a clean, but there was no improvement.
The engine would also only rev to 3500 with foot flat to the floor in neutral.
After researching on the internet, a recurring theme of possible blocked catalytic converters was coming up.
So yesterday I bit the bullet and stripped the heat shield off and then removed the Cat - quite an easy job actually.
I started the engine up, without the Cat on and put my foot to the floor. I could tell immediately that it was cured as the engine spun freely round to about 5500.
I don't know much about cats, but it seemed like a big ball of honeycomb and it was loose and rattled around and full of soot etc.
I decided that I would hack it out altogether so I took a hammer and a big screwdriver and broke it up and shook all the bits out.
I put it all back together and when I took it for a drive, it was like driving a totally different car with loads of power and the Turbo kicking in as it should.
I was ecstatic.
I don't know whether it will pass emissions come MOT time, but here in Cyprus its only every 3 years and I've got 2 to go, but its great to have my power back again.
regards
Pete
 
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Quick session with diagnostic gear would have likely got you this answer quicker...
 

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Did the same with mine.

Mine was intermittently working fine - then down on power another day. I believe this will have been the loose honeycomb ball turning around so the holes didn't line up with the exhaust and hence blocked it.

Hacked mine out and never looked back since
 
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