Peugeot’s 207 was the French automaker’s best-selling car for many years and Europe’s largest selling car in 2007. Launched in 2006 to replace the 206, the 207 proved to be a great success for the brand. In 2012 though, Peugeot will be replacing its aging 207.Earlier in 2011 our spy photographers spotted the new 208 undergoing testing. Now our spies managed to snap up images of the new two-door version. The 208 borrows heavily in terms of styling from the 508, which sports Peugeot’s new design direction.BMW POWER?The new model will receive a new three-cylinder engine which could come in both naturally aspirated and supercharged versions. New four-cylinder gasoline engines from BMW could also power the 208. Added to the range will also be a number of fuel-efficient diesel powerplants. The new model will be offered in three body styles; a hatchback (two-door and four-door), a station-wagon and a hard-top convertible. The new Peugeot 208 will have to compete with the Ford Fiesta, Renault Clio, Toyota Yaris and Hyundai’s Elantra.