Peugeot is currently owned by Stellantis and is churning out some cool-looking "efficient" cars. But there was a time when this French automaker was known for its rallying hooligans! The Group B rally era is one of the most iconic in the history of the World Rally Championship. The era saw some of the most incredible rally cars to ever exist compete in the competition.

There was of course the Audi Quattro, and the Lancia 037. These two incredible machines competed head-to-head across the amazing 1983 WRC season, providing one of the best spectacles we have ever seen in rallying. There are one or two cars though from the era that seem to be forgotten or underrated. Cars such as the Peugeot 205 T16.

This incredible little car was one of the finest of the era, as it took on the likes of the Quattro and the 037 to ultimately take home world championship success for the French car company. For whatever reason, the 205 T16 doesn’t get looked on as fondly as its rivals.

Maybe because it isn’t the most romantic of the Group B cars, or the fact it carries the Peugeot name. But the reality is that it was one of the most successful cars of Group B and should be remembered as such.

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The Birth Of The 205 In World Rally

Peugeot 205 T16 Rally Side View
Via: Classic Trader

The T16 was of course born out of the Peugeot 205, a car that in itself would become one of the finest little hatchbacks of the 1980s and the 1990s. Peugeot of course would need to put in a lot of work in order to get the car ready to go rallying, and they turned to the newly acquired Talbot brand which had a lot of experience in rallying, as well as winning the 1981 WRC manufacturer's title with the Sunbeam Lotus. Jean Todt, later the boss of the Ferrari F1 team, was the man chosen to lead the operation.

Peugeot 205 T16 Rally 1984 Up For Auction Front Quarter View
Via: Sports Car Market

Peugeot of course had to produce road going versions of the car, so it would be accepted under homologation for the WRC. This was the regular 205 T16 with the Evo 2 becoming the ultimate rally version of the car. Peugeot would have to make 200 road-going examples, with the rally car base don the two-door version of the 205. The engine was moved from the front of the car to the rear for better weight distribution, and the Citroën SM gearbox was now mounted transversely, the 205 now also having all-wheel drive.

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Peugeot 205 In Group B Competition

Peugeot 205 T16 Rally Drifting Sideways
Via: WRC

The engine in the car was built around the Peugeot XU diesel engine, with a modified DOHC 16 valve head and a turbocharger too. The first rally for the little Peugeot would be the WRC round in Corsica on May 3rd 1984, and its little size and 350 hp engine with all-wheel drive made it an instant success. The 205 T16 would set the fastest stage times in that first rally, but it was to be the end of the 1984 season and then the 1985 season that saw the 205 T16 really take off when it came to success.

Peugeot 205 T16 Rally During 1984 Rally Finland
Via: Peugeot

The 1984 season saw the Peugeot win three of the final four events of the year, and Ari Vatanen would finish the season in fourth place despite missing the early rounds of the championship. In 1985, the 205 T16 was placed in the very capable hands of Ari Vatanen and Timo Salonen, two of the best rally drivers of the Group B era. This was the year that Peugeot really took the fight to Audi, with Vatanen winning the first round of the year in Monte Carlo despite having to pass Walter Rohrl in the Quattro after an eight-minute penalty.

The 205 T16 Destroys The Quattro

Peugeot 205 T16 Rally During 1985 Rally Monte Carlo
Via: Peugeot

The small Peugeot would then go on to utterly decimate the competition. Vatanen won in Sweden while Salonen would win the event after in Portugal. Audi would not win another that year until round 10 out of 12, as Peugeots swept to seven wins during the 1985 season, shared among the odd win for Toyota, Lancia and Renault.

Vatanen’s charge was sadly curtailed thanks to a horrible accident in Argentina that left him with life-threatening injuries, but Salonen would go on to win that year's title for Peugeot as they won the manufacturer's title.

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Forcing A Rethink For Audi

Peugeot 205 T16 Rally During 1986 WRC Season
Via: Peugeot

The 205 T16 would force Audi to have a massive rethink on the design of its Quattro, at a time when the company was losing interest in the rally program. That sole win in 1985 however by Rohrl in Sanremo would be the final win for Audi in Group B.

Peugeot would once again win the championship in 1986, although this was marred by tragedy after the death of Henri Tiovonen and his co-driver Sergio Cresto, an accident that brought to an end the Group B era of rallying. It also meant the last win for the 205 T16, would be that year's RAC Rally in Britain, with Timo Salonen having the honors of bringing down the era of an underappreciated Group B monster.

Sources: Stellantis, Rally Group B Shrine