- The company was luckless on the racecourse and just canâ€™t stomach paying for losing.
- The company is in dire straits financially, and spending money for frivolous ventures such as car racing just doesnâ€™t look right.
For Franceâ€™s Peugeot, itâ€™s both.
According to Reuters, PSA Peugeot Citroen will withdraw from Le Mans endurance racing. They say it’s the money. “This decision has been taken in the context of a difficult economic environment in Europe,” a company statement says. Reuters explains:
â€śEurope’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.â€ť
As we saw yesterday, PSA lost a full point of market share in Europe last year, sales were down 8 percent. That while #1 rival Volkswagen took two points of market share and expanded its EU sales by 7.5 percent.
But then, there is that other reason, again the words of Reuters:
â€śPeugeot 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.â€ť
Now THAT is intolerable. Losing market share to le boche is one thing. But losing market share AND Le Mans is impardonnable!
Letâ€™s say itâ€™s for financial reasons and blame the difficult economic environment in Europe, oui?