SOCHAUX, France (AP) — Peugeot is hoping a complete makeover of its mid-sized hatchback will help turn the struggling French automaker’s fortunes around— and dent the market dominance of its German rival Volkswagen.But a lot is riding on the new 308’s success: Peugeot SA’s sales show little sign of recovery in a stagnant European car market and the carmaker has had to cut costs significantly, including closing down a plant.However, the company’s chief executive, Maxime Picat, said in an interview Tuesday on the production line for the new 308 that all the elements for a rebound are in place: new products, cost-cutting, and signs that demand is slowly recovering after years of slumps.The company, like many European carmakers, is reeling from years of falling sales as consumers hang on to their old cars amid high unemployment and recession. Last month, parent company PSA Peugeot Citroen reported a first-half loss of 426 million euros ($568.2 million).Picat said Peugeot thought that slide in demand was slowing and the second half of the year would show some improvement. Car sales in the European Union fell 6.6 percent in the first half of the year as compared to 2012; they were down 11.3 percent at Peugeot.Picat stressed, however, that Europe’s car market will struggle for a long time.