Peugeot Reducing Production of New 208 Supermini as European Sales Slow Down

The Peugeot 208 may be the French firm's newest and hottest product and the second most popular supermini in Europe after the VW Polo, but the economic downturn in the region has put a dent in sales.

A Peugeot spokesperson, who was not named, told Autonews Europe that the brand is cutting output and its sales outlook for the 208 sub-compact hatchback on weak demand in the European market, without providing any specific numbers.

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Peugeot Sport Replaces 207 S2000 Rally Racer with New 208 R5

With the 208 replacing the 207 in Peugeot’s European line-up, it was natural that the French automaker would introduce a racing version of the new model to succeed the highly successful 207 S2000 International Rally Championship car.

Peugeot's new competitor in international rallying is the 208 R5, which made its world premiere at the ongoing Paris Auto Show. Due to FIA’s new rules that were introduced to reduce costs and will come in effect next year, the 208 R5 is quite different to the car it replaces.

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Peugeot 208 GTi in the Flesh from Paris and on Film in New Promo

While the Onyx, and to a lesser extent, the 2008 concepts are the most impressive models at Peugeot's Paris Motor Show stand, the French carmaker also brought along the production version of the 208 GTi that promises to rekindle the ideals of the original 205 GTi.

The new model's arsenal includes a potent 1.6-liter turbocharged engine that sends 197hp (200PS) and a peak torque of 275Nm (203 lb-ft) to the front wheels via a six-speed manual gearbox, and a revised chassis with new components and re-tuned suspension settings.

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Peugeot Announces New 208 GTi Limited Edition for Britain

When Peugeot unveiled the new 208 GTi hot hatch earlier this month prior to the car's world premiere at the Paris Motor Show on September 27, the automaker noted that it plans to produce a limited run model with enhanced specification and bespoke styling cues.

Today we learn that Peugeot will build 54 examples, 29 of which will be heading to the United Kingdom. The French carmaker says it chose this number to represent each year since the UK launch of the original 205 GTi in 1984.

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Peugeot Le Mans Dealer Creates 208 Rallye Concept, Should the French Automaker Build it?

If you lived or grew up in Europe during the late 1980s through the early 2000s, you will no doubt remember the iconic Rallye series from Peugeot, which started out with the 205 supermini and continued with the 306 compact and the smaller 106.

The common denominator of the series was that the Rallye models were usually based on fast versions of their respective hatchback counterparts (i.e. the 106 XSi and 306 GTI) but did away with most luxury amenities such as electric windows and mirrors, the heavy seats and in some cases, even power assisted steering and airbags.

Peugeot's ultimate goal was to lower the cars' weight to improve performance and handling while also offering them at a lower price point – something that made the Rallye models extremely popular with driving enthusiasts on a budget.

Today, Peugeot is looking to re-enter the sports hatch segment with the new 208 GTi that is lighter at 1,160kg (2,557 pounds), smaller, and thanks to its new 197hp (200PS) 1.6-liter turbo engine, more powerful than the disappointing 206 and 207 GTi models.

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Peugeot Sport Teases New 208 Type R5 Racer with 280HP Prior to Paris Motor Show

The new Peugeot 208 Type R5, to be unveiled on September 27 at the Paris Motor Show, is the French marque's second competition model based on its new supermini after the 208 R2 that was introduced back in May.

We only get a single darkened picture of the 208 Type R5 that sports Peugeot's racing colors (in case you didn't notice, there's a thin yellow line between those BMW M stripes), but the carmaker has released initial details on the vehicle that will compete in the upcoming R5 category, to be launched by FIA in 2013.

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