Peugeot exits Le Mans racing, citing finances

Jan 18 (Reuters) - French automaker PSA Peugeot Citroen said on Wednesday it would withdraw from Le Mans endurance racing ahead of the 2012 season, citing financial pressures.

"This decision has been taken in the context of a difficult economic environment in Europe," the Peugeot brand said in a statement on its website. "Peugeot has chosen to concentrate resources on its sales performance in 2012."

Europe's second-biggest car maker is struggling to rein in costs and revive flagging sales after a series of profit warnings. In October, Chief Executive Philippe Varin announced plans to save an additional 800 million euros ($1.03 billion) this year, including some 6,000 job cuts.

Peugeot last claimed victory in the 89-year-old Le Mans 24 Hours contest in 2009, before losing to Volkswagen's Audi team in the following two seasons.

PSA's second auto brand, Citroen, has no plans to halt its participation in the World Rally Championship, a company spokeswoman said.

($1=0.7800 euros) (Reporting by Laurence Frost; editing by Elena Berton)


by Reuters