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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