Last September, Peugeot announced that it had built a experimental hybrid version of its 908 HDi Le Mans prototype coupe using kinetic energy recovery system (KERS) similar to those currently being developed by Formula One teams. The 908 HY uses an electric motor/generator and lithium ion battery pack to store electrical energy. Earlier this week, rumors surfaced that the Ferrari F1 team might be working with Peugeot on the KERS development because of technical problems the Italian company was having. The rationale for the move was to circumvent the new testing ban that goes into effect for F1 teams during the race season this year. The idea is that Ferrari would use Peugeot to track test its system. However, Ferrari has vehemently denied the stories. The team claims it would be politically foolish to try to avoid a rule that all teams agreed to. After all, no other race team has ever cheated to try to get an advantage on its competitors, so why would Ferrari?