The Peugeot 905s in action
Peugeot had had a small involvement with the WM team at Le Mans through the late 70s and 80s, but they rose to sportscar prominence with the short lived 3.5 litre Group C regulations.
Despite initially underestimating Jaguar's response to the 3.5 litre Group C rules, Peugeot's response, the 905B, was the undoubted king of the 3.5 litre era after Jaguar's departure from the series. As well as taking victory in the WSC, they also won Le Mans in 1992 and 1993 and the Toyota competition was never really entirely competitive.
However, with the collapse of Group C the V10 engines went to F1, where they have been used by Jordan and McLaren and will be used by the Prost team in 1998.
Many believe that the 3.5 litre class was devised specifically to get Peugeot into F1, but it's indisputable that the 3.5 litre rules were the final nail in the coffin of Group C.