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Peugeot's Hydraulic automatic transmissions and the automatic gear selector are a cut-away model of a torque converter. The predominant form of automatic transmission is hydraulically operated, using a fluid coupling or torque converter and a set of planetary gearsets to provide a range of torque multiplication.

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Peugeot Expert Gearbox
Peugeot 206 Gearbox
Peugeot 306 Gearbox
Peugeot 406 Gearbox
Peugeot Boxer Gearbox

A hydraulic automatic transmission consists of the following parts

Fluid coupling or torque converter: A hydraulic device connecting the engine and the transmission. It takes the place of a mechanical clutch, allowing the engine to remain running at rest without stalling. A torque converter is a fluid coupling that also provides a variable amount of torque multiplication at low engine speeds, increasing "breakaway" acceleration.
Planetary gearset: A compound planetary set whose bands and clutches are actuated by hydraulic servos controlled by the valve body, providing two or more gear ratios.
Valve body: hydraulic control center that receives pressurised fluid from a main pump operated by the fluid coupling/torque converter. The pressure coming from this pump is regulated and used to run a network of spring-loaded valves, check balls and servo pistons. The valves use the pump pressure and the pressure from a centrifugal governor on the output side (as well as hydraulic signals from the range selector valves and the throttle valve or modulator) to control which ratio is selected on the gearset; as the car and engine change speed, the difference between the pressures changes, causing different sets of valves to open and close. The hydraulic pressure controlled by these valves drives the various clutch and brake band actuators, thereby controlling the operation of the planetary gearset to select the optimum gear ratio for the current operating conditions. However, in many modern automatic transmissions, the valves are controlled by electro-mechanical servos which are controlled by the Engine Management System or a separate transmission controller. (See History and improvements below.)

Hydraulic & Lubricating Oil: called Automatic Transmission Fluid, or ATF, this component of the transmission provides lubrication, corrosion prevention, and a hydraulic medium to convey mechanical power. Primarily made from refined petroleum and processed to provide properties that promote smooth power transmission and increase service life, the ATF is one of the few parts of the automatic transmission that needs routine service as the vehicle ages.
The multitude of parts, along with the complex design of the valve body, originally made hydraulic automatic transmissions much more complicated (and expensive) to build and repair than manual transmissions. In most cars (except US family, luxury, sport-utility vehicle, and minivan models) they have usually been extra-cost options for this reason. Mass manufacturing and decades of improvement have reduced this cost gap.

Peugeot Gearbox Improvements

As the engine computers became more and more capable, even more of the valve body's functionality was offloaded to them. These transmissions, introduced in the late 1980s and early 1990s, remove almost all of the control logic from the valve body, and place it in into the engine computer. (Some manufacturers use a separate computer dedicated to the transmission but sharing information with the engine management computer.) In this case, solenoids turned on and off by the computer control shift patterns and gear ratios, rather than the spring-loaded valves in the valve body. This allows for more precise control of shift points, shift quality, lower shift times, and (on some newer cars) semi-automatic control, where the driver tells the computer when to shift. The result is an impressive combination of efficiency and smoothness. Some computers even identify the driver's style and adapt to best suit.

Some Peugeot Vehicles..
City Car: 104, 106, 107
Supermini: 205, 206, 207
Small family car: 305, 309, 306, 307, 308
Large family car: 405, 406, 407
Executive car: 505, 604, 605, 607
Others: MPV 1007, 806, 807, 4007