Hello- we have had 2 Picasso's both being 2.0HDi....then last Sept we took ownership of the new C4 Grand Picasso. WOW....again a 2.0HDI but VTR+...it is absolutley fab. The previous cars we owned have very easily towed a Bailey Ranger 4 berth, I will say that on very steep hills---Glouc/Derbyshire you had to make the gears work but it got you there. Our 2.0HDi gave us a return for towing of 44mpg. We had 2 adults and 2 kids in the car, granted the caravan was not packed to max...everything you would need for a 4 week holiday and it never let us down. The new one is oh so --well.....cruise control, 6 gears and being a heavier tow can take us this year to Cornwall with no worries. If you really are wanting a Picasso I suggest that you seriously consider a deisel...look for a 2.0HDI dependant on what caravan you are towing...if you are just a 2 berth--weekend get away camper then yes you could get a 1.8 but check....good luck in what you get. Oh and this is a woman tower speaking from 11yrs experience of towing...hve to do it as the OH doesn't drive. Good Luck
I used to own a 03 reg 2.0HDi (90 HP) picasso and our choice of caravan was limited by the 1300kg max tow. My car had over 100k on the clock when we bought the van and I have to say that it was underpowered for anything but reasonably flat roads. I now have a 1.9 vectra (120 hp) and this tows without any issues.
On other threads there was a guide of having a minimum of 40 HP per ton of train weight, having towed at this and at 30 HP per ton with the picasso I wouldn't think about less than 40 HP per ton in future.