Arrows for re-badged Peugeot deal

The Arrows Formula 1 team is set to rubber-stamp a deal this week to run re-badged Peugeot engines in 2001

Arrows for re-badged Peugeot deal

Peugeot is on the verge of announcing its official pull-out from F1 at the end of this season, but in a move that echoes Supertec's inheritance of the defunct Renault F1 project, its V10 project will be taken over by Far Eastern consortium Asian Motor Technics.

Arrows boss Tom Walkinshaw concluded a deal to run the engines last week, according to sources, and will sign a contract in Paris this week. It is understood that Arrows will have the option to rebrand the engines to a name of their choice, a la Benetton's Supertecs being renamed Playlife V10s.

The company will retain many of Peugeot's existing F1 personnel, with former Williams and Ferrari engineer Enrique Scalabroni at the helm. Although Peugeot's engine programme has been openly criticised by Alain Prost, whose eponymous team currently uses the engines, Peugeot sources say development work will continue under the new deal and the basic specification of the engines will not be frozen at the end of this season.

In a straight swap, Arrows' Supertec supply will head the way of the Prost team, which is set to be renamed after its still-to-be-announced sale to an unknown Canadian consortium.

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