Verified answer

Re the previous answers:

The 106 1.5 diesel engine is not one of the XUD family of engines as used in 205/309/405. It is a TU5D. The XND is the model of a 106 that uses the diesel engine, with the XN identifying the specification level of the car, and the D indicating it is a diesel.

Also, the TU5D is a good reliable engine. I have an engine from a car that was crashed at 240,000 km (still running well at that stage) and I also have a car that is circa 370,000 km (engine runs well, just ready now for its first new clutch)

The Peugeot models available in the US only go up to 91, if you are after a diesel, you could see if you could find one of the 405 XUD cars, some are turbo intercooled.

Is it an option to consider importing a 106 engine from Europe and finding a small car to shove it into?

There is the occasional small Peugeot diesel car in the US, eg the green 205 diesel (XUD engine) on craigslist (but since it is rare in the US, it definitely doesn't count as cheap at $9950!)

One of the toughest little engines about. Draws heavily from the design of the XUD and the TU engines, so has good "breeding."

Its not very fast, and unfortunately was not available in a turbocharged version, but despite one answer to the contary its a very strong engine. Timing belt needs renewing circa 60,000 miles and they do occasionally pop a headgasket with a few hundred thousand miles on them, but otherwise a very strong crude old diesel.

The rotary injection system should last the lifetime of the engine, the service interval is short though, will require regular oil changes with a decent 15w/40 mineral oil.

Peugeot make a motor for all their vehicles and is the same motor in most Citroen vehicles and is the XUD is easy to work on when needs be,timing belt at 60,000 miles for example,ANY vehicle in the world which is treated right and driven right will last a long time

you are able to ensure/opt for as in keeping with your each and on a daily basis/month-to-month force. As in keeping with experts, 50 or above km/day diesel favourite, much less petrol. yet i think of, it relatively is the time to re-write this calculation because of the fact of our diesel-petrol fee diverse which starting to be each month (because of the fact the critical government. given the authority to improve the diesel fee 0.50 paise/month to oil businesses) skinny and quickly it relatively is going to likely be very very nearly equivalent.

i have seen these engines in equipment especially spraying equipment for farmers and they a piles of junk. get one only if you want to work on it more than you drive it. they are weak and very expensive to work on