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Unfortunately for Peugeot, this strategy did not work. With the 205 phased out, other superminis like the Ford Fiesta and Volkswagen Polo continued to sell well and even increased in popularity, and without a direct competitor to these cars Peugeot was losing sales fast. A new supermini was required, and the 206 was launched in 1998 as a somewhat belated replacement for the 205.