PSA Peugeot Citroën announced today (18th January) that it would be ending its association with the Le Mans 24 hour race and endurance racing generally with immediate effect. In a move that shocked the world of motorsport, the French manufacturer said in a statement, “This decision has been taken in the context of a difficult economic environment in Europe. Peugeot has chosen to concentrate resources on its sales performance in 2012." Peugeot, which is Europe's second-biggest car maker has embarked on a series of cost-cutting measures and is trying to revive flagging sales after a series of profit warnings. In October, Chief Executive Philippe Varin announced plans to save an additional 800 million euros this year, including about 6,000 job cuts.

The tussles between Peugeot and Audi have been one of the features of the 24 Heures du Mans in recent years with Peugeot winning the event in 2009 and running Audi very close in 2010 and 2011. In 2010 Peugeot won the inaugural Intercontinental Le Mans Cup, the predecessor of this year’s newly launched World Endurance Championship.

Peugeot’s decision to terminate its endurance racing programme comes against a background of declining car sales for Peugeot group. Whilst the French manufacturer’s withdrawal is undoubtedly a blow for endurance motorsport, the organisers of the Le Mans 24 Hours and the World Endurance Championship, Le Mans based L’Automobile Club de l’Ouest, whilst regretting Peugeot’s decision, was relatively upbeat. The ACO made reference to the creation of the new FIA World Endurance Championship promising that this particular discipline of motorsport would be more competitive than ever. The ACO commented, “The grids of the Le Mans 24 Hours and the FIA World Endurance Championship 2012 promise to be well filled. This Wednesday, January 18th, marks the closing date for entries to both competitions. Many entries have been registered, some from major manufacturers, proof that automobile endurance racing is healthy and dynamic.” The ACO is expected to reveal the list of competitors for the 24 Heures du Mans and the 2012 FIA World Endurance Championship on 2nd February.

Peugeot’s decision to pull out of endurance racing was regretted by fans and adversaries alike. Commenting on his Facebook page, one of Peugeot’s great rivals, Scotsman Allan McNish, who drives for Audi, said, “Bad day for everyone Peugeot Sport. Thanks for the fantastic competition over the years.”

The battles between Audi and Peugeot at Le Mans will be sadly missed. It remains to be seen who will take on Peugeot’s mantle as the principal challenger to Audi.

PSA's second car brand, Citroën, has no plans to withdraw from the World Rally Championship, a company spokeswoman said.