This kind of works on the same principle as the smoothing lights tutorial. First you need to grab the lasso tool (L) and draw a box like the one on the left. Then Copy and Paste it to make it a new layer.
Hold your finger on the CTRL key and drag and click the mouse and the layer will move. Make sure that its covers most of the light (ie- the top left if the light down to the top left of the grille).
You may have to use CTRL+T to extend the size of the new layer. As you can see the right side of the layer covers over the swage line and needs to be rubbed out using the Eraser tool (E).
Then grab the lasso tool and trace a line from the top left of the light to the top left of the grille. and then hit the delete key.
Almost done now... All that is now required is a line drawn along the bonnet line just cut out. The correct colour can be selected by sucking up (I) the black areas in the gaps between the light and the bodywork.
There we go ;) complete! Effects can be brilliant on cars with squarer lights than this 206.. But still, nice effect!