VALPARAISO (Chile) - DEFENDING champion Stephane Peterhansel became the third Mitsubishi driver to pull out of the Dakar Rally on Friday when his vehicle suffererd a broken engine on the seventh stage.

Peterhansel, who has won the car section three times and the motorcycle event on six occasions, saw his engine catch fire before it lost power completely.

'At 148km of the special Stephane suffered engine failure. It's over. He's stopped by the side of the road,' said a team spokesman.

Peterhansel, taking part in his 20th Dakar Rally, started the day in eighth place, 34 minutes behind leader Giniel De Villiers of South Africa.

His withdrawal virtually ended Mitsubishi's hopes of an eighth successive victory following the withdrawal on Thursday of 2006 champion Luc Alphand and the first stage demise of Hiroshi Masuoka, the 2002 and 2003 winner. -- AFP