Peugeot has high hopes for 'Back in the race'

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Peugeot has high hopes for 'Back in the race'

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Struggling French carmaker Peugeot has revealed its long-awaited recovery plan.

Dubbed “Back in the race” it involves reducing capacity, the number of models, and costs, and returning to profit by 2018.

It also promised develop new plug-in hybrids, four-wheel-drive powertrains and self-driving cars – all while limiting investment to 7-8 percent of sales, compared with 8-10 percent for mass-market peers.

The company’s shares have risen by 50 percent this year, possibly on hopes of a takeover, but the recovery plan clipped three percent off the price on Monday.