Yes, but you might think that there are reasons to co-operate since a Pug 406 is still a 406, no matter which series under same regulations your running in. Peugeot was a works team in BTCC too, so Peugeot Sport should have been interested in giving support to BTCC. Especially since the cars were very good in the high-ranked STW. Money issue a guess (as always), or "political"?
But indeed, STW was very good with many famous names. Many teams from the golden DTM/ITC days did the cheaper (well at least it was cheaper at first!) super touring instead. Even remember when Volvo seriously considered entering STW instead of BTCC around 1997-98. Luckily they stayed and won '98.
