In 1982, motor racing federation FIA decided to create a new rally class. This so-called “Group B” class was a competition in which there were hardly any rules. The only hard requirement was that manufacturers had to build at least 200 street cars from their competitive model. This new rally class caught the attention of many car manufacturers because the regulations offered the opportunity to maximize their technical knowledge. The result was a period of exotic, super-fast cars with rear or four-wheel drive that were as fast on gravel as a Formula 1 car on asphalt. From Lada to Ferrari, every manufacturer entered the Group B standings and one of the manufacturers was Peugeot.
Peugeot pumped and pimped their existing retail car model 205, and released it as model 205 T16. The rally edition was successful, winning two world titles until the Group B races were terminated following two lethal accidents in 1987. The same design was also used for the 405 Turbo 16.
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See also the post about Autodromo’s Group B watches. The logo directly references the lettering from Peugeot’s rally cars.