Which web site has this come from?
It may be worth discussing on the 106 rallye club site:
www.106rallye.co.uk
Peugeots are galvanised so rust isn't a major problem although they do start to rust around joints as has been stated above. The rallye and GTi's had stiffend shells as well.
I'm interested in whats caused that to happen, but I think we need more info about the car etc.
Kirk