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Peugeot Looks To New Hatchback For Turnaround

Peugeot is hoping a total revamp of its midsized hatchback — a category that Volkswagen has long dominated — will help lead the struggling French company's turnaround. The company's chief executive, Maxime Picat, says that all the elements for a rebound are in place.

SOCHAUX, France (AP) — Peugeot is hoping a total revamp of its midsized hatchback — a category that Volkswagen has long dominated — will help lead the struggling French company's turnaround.

The company's chief executive, Maxime Picat, says that all the elements for a rebound are in place. New products, cost-cutting measures that included the closure of a plant, and signs that demand is growing after years of slumps. But he warned Tuesday that the going is still tough in Europe and Peugeot is looking outside the continent, where it has traditionally done most of its business, to bolster sales.

He stressed that the new 308, Peugeot's answer to the VW Golf — is also "not the only weapon" in the company's arsenal, noting that Peugeot is ramping up production of its crossover 2008.