PSA Peugeot Citroen has pulled the plug on its Le Mans racing team, citing financial pressures, and will not be at the famous 24-hour race this year.
After 14 victories in the last 16 races, including a double at the 2009 event, the company said it “prefers to concentrate its 2012 resources on its commercial performance” and, in particular, ensuring the successful launches of new models such as the 208 due out this year.
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Peugeot added that, under an agreement it has with its unions, all employees involved with the team will be offered redeployment within the PSA group.
PSA has been reigning in its costs after a series of profit warnings. In October, chief executive Philippe Varin announced plans to save an additional EUR800m (US$1.03bn) this year, including some 6,000 job cuts.
Peugeot ended its involvement in Formula One racing in 2000, selling its interest to Asiatech. However, Citroen said it had no plans to halt its successful participation in the World Rally Championship.
