Peugeot quit in '99.

Peugeot bosses have admitted that they knew the company was withdrawing from Formula One over a year ago.

Corrado Provera, in Britain for the final round of the world rally championship, told the Reuters news agency that Peugeot had officially confirmed to partner Alain Prost that it was pulling out of the category last November, but would honour its contract for another season.

Neither side could confirm to the press what they both knew, and this led to a protracted 'will they, won't they' saga that ran almost until the end of the 2000 campaign.

To make matters worse, the enmity between the two sides grew steadily during the year, with each blaming the other for a series of dismal performances that led to a pointless season in more ways than one. Prost ended the campaign ranked worst of all among the eleven F1 operations, and almost lost its disillusioned owner as a result.

"This has been an awful year, because we have known since the end of 1999 that we had to withdraw," Provera said, "This has been, both personally and professionally, something very difficult to undergo."

Peugeot, which is on the verge of winning the world rally title with Marcus Gronholm this year, maintains that the cost of competing at the highest level in F1 was spiralling out of control, and claims that it would be no surprise if other major manufacturers were to follow it into exile.

"The McLaren and Ferrari level is so high and will remain so high because the two teams have only one target - to kill each other," Provera continued, "It may be that some other important manufacturers will realise that being used as co-actors to someone else's triumph is a little to expensive."

Prost will use Ferrari engines in 2001, with the supply of Peugeot units - now badged by AMT - switching, under new ownership, to Arrows.