PARIS – General Motors’ erstwhile alliance partner PSA Peugeot Citroen is counting on the Peugeot 208, which goes on sale in France March 29, to pull it out of a sea of red ink. PSA lost €497 million ($656 million) in second-half 2011 and sold €1 billion ($1.32 billion) of assets, but the 208 could pad the company’s bottom line even as the European market shrinks violently. It isn’t the first time PSA has relied on its B-car. In the 1980s, the auto ...

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