- The company was luckless on the racecourse and just can’t stomach paying for losing.
- The company is in dire straits financially, and spending money for frivolous ventures such as car racing just doesn’t look right.
For France’s Peugeot, it’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:
“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.”
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:
“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.”
Now THAT is intolerable. Losing market share to le boche is one thing. But losing market share AND Le Mans is impardonnable!
Let’s say it’s for financial reasons and blame the difficult economic environment in Europe, oui?