Group B racing came to an end in 1986 with an unfortunate accident involving an Delta S4. Sadly, Lancia lead driver, Henri Toivonen and his co-driver, Sergio Cresto, were killed in a high-speed accident while racing. Group B was instally cancelled for the 1987 season. After Group Bs cancellation, Peugeot used much of their experience developing the 205 T16 for the Paris-Dakar Rally and Pikes Peak Hillclimb.
At Pikes Peak, Peugeot was fighting with Audi and their Sport Quattro S1 which won the event. Peugeot’s response was to lengthen their car and wrap it with a 405 bodyshell for both 1988 and 1989.