PEUGEOT Sport have released Worcestershire's Matt Neal from his contract to drive the 406 Coup in the 2001 British Tour-ing Car Championship.

A last minute breakdown in negotiations with a non-motorsport related major sponsor that was to fund the third car has meant that only two of the 406 Coupe's are likely to be raced at Thruxton on 7th May.

Mick Linford, Peugeot Motor-sport Manager said, "I am extremely disappointed for the team and of course for Matt's sake.

"It was a joint approach that failed unexpectedly at the very last moment.

"Unfortunately for Matt, Steve Soper and Dan Eaves were contracted first and as such, it was Matt who suffered most with the loss of the sponsor. I hope we can renew the relationship one day in the future."

Vic Lee, Managing Director VLR said: "We regret the whole situation, as Matt is a well qualified driver who has great potential, yet as all involved know the world of Motorsport is a turbulent one, and things rarely go according to plan. We wish Matt well in whatever direction he chooses to pursue."

Neal said: "I needed a commitment for the year, but when the sponsorship talks broke down, Peugeot could only guarantee part of the championship. That was unacceptable.

"I am very disappointed but I do understand the reality of the situation and wish the team well."

n Worcestershire racing driver Steve Watton made it two wins out of two in the Historic Road Sports Champ-ionship.

The Little Witley driver finished eight seconds clear of his nearest rival in his Lotus Elan S4 in the second round of the championship at Mallory Park in Leicestershire.

Watton qualified second on the grid after suffering major problems with his set-up during practice, and a slow start saw him drop to fourth at the first corner.

But through plenty of determination he soon clawed his way into the lead and held it with some comfort until the chequered flag.

Watton hopes to maintain his advantage in the third round at Cadwell Park in Lincolnshire on May 6.