After having launched the 205 hatchback in 1983, Peugeot wanted to boost its image even further by competing in the rally madness that was the Group B. To homologate the necessary rally car, it needed to churn out 200 street-legal versions that had to be based on a current production vehicle. That vehicle was the 205 supermini and the result was the bonkers Peugeot 205 T16, aka Turbo 16 in France.

What’s in a name?

While “205” was obviously carried over from the base car, “T” came from turbo, as the rally racer got two KKK turbochargers, while “16” indicated the number of valves - four per cylinder.

The engine was mounted in the rear

The standard 205 had its engine mounted in the front and was a front-wheel drive car. The 205 T16’s inline-four engine was installed in the back and it spun all four wheels via a transversely-mounted Citroen SM gearbox. Displacing 1.8 liters, the powerplant was good for around 200 horsepower at 6,750 rpm and 188 pound-feet of torque at 4,000 rpm in the road-going version, while the out-and-out rally variant churned out more than 400 horsepower.

Obviously, it had a rad body kit

Heuliez was tasked with building the T16’s body kit and it did not disappoint. The rear of the car was cut completely and then the frame was rebuilt completely using a mix of sheet steel profiles and tubes. The front also got a tube frame onto which the front suspension attached. Wide wheel arches made the T16 looks a whole lot meaner than the stock 205 and the whole rear section would lift to allow access to the engine.

It provided the base for a future Peugeot prototype

Peugeot used the T16’s chassis and engine to develop the Quasar concept car. Through heavy tuning, power output was raised to 600 horsepower while torque took a hike to 360 pound-feet. The Quasar also featured a 60/40 Ferguson all-wheel-drive setup, just like the 205 T16. The exterior was penned down by Gerard Welter with Paul Bracq tasked to draw the interior design.

The 205 T16 that’s being auctioned at Aguttes – Spring Sales 2021 on March 21 has just 6,152 miles on the odometer, comes in left-hand drive configuration and is one of the just four units believed to be painted in Pearl White – a batch reserved for Jean Boillot (Peugeot President), Didier Pironi, Andre de Cortanze, and Jean Todt. Perhaps that’s why it is estimated to fetch between $357,000 and $476,800.