After retiring from racing following the death of his friend Jo Schlesser, Guy Ligier founded his own team and had engineer Michel Têtu develop a sports car named JS1, bearing Schlesser's initials. The Cosworth-powered JS1 achieved wins at Albi and Montlhéry in 1970. For 1971, Ligier had the JS1 developed into the JS2 and JS3. The JS2 was homologated for road use and used a Maserati V6 engine, while the JS3 was an open-top sports-prototype powered by a Cosworth DFV V8 engine. The JS3 won at Montlhéry in 1971. Ligier installed the Cosworth DFV in the JS2 road car, finishing second overall at Le Mans in 1975. Guy Ligier then switched his efforts into Formula One.
Ligier entered Formula One at the start of the 1976 season, following the acquisition of the Matra F1 team's assets. They competed with a Matra V12-powered car. The team secured its first Formula One Grand Prix win in 1977 with Jacques Laffite driving in the Swedish Grand Prix. This is considered the first all-French victory in the Formula One World Championship and the first Formula One victory for a French-licensed team and a French engine. The deal with Matra ceased in 1979, and Ligier built a Cosworth-powered wing-car, the Ligier JS11. The JS11 began the season winning the first two races with Laffite. Ligier was one of the top teams through the early 1980s, with sponsorship from Talbot, SEITA, Gitanes, and Française des Jeux. Competitiveness declined around 1982. In the mid-1980s, the team benefitted from a free Renault turbo engine deal, supported by sponsors like Loto and Elf Aquitaine. When Renault left the sport in 1986, Ligier was left without a primary engine supplier, leading to customer engine deals with Megatron (BMW M12 engines), Judd, and Cosworth, followed by works contracts with Lamborghini, Renault, and Mugen-Honda. Between 1987 and 1991, the team struggled, failing to score points in 1988, 1990, and 1991. In 1993, Guy Ligier sold the team to Cyril de Rouvre. The team scored eight podium finishes between 1993 and 1996. In 1994, de Rouvre sold the team to Flavio Briatore and Tom Walkinshaw. In 1995, Ligier switched to Mugen-Honda engines. The Mugen-Honda-powered Ligier JS43 became a surprise winner with Olivier Panis at the Monaco Grand Prix in 1996, in a race with heavy attrition. This was the team's last win. The Ligier name last appeared in Formula One at the 1996 Japanese Grand Prix. On 13 February 1997, the team was sold to Alain Prost and became Prost Grand Prix. As of 2025, Équipe Ligier remains the last defunct Formula One team to score a Grand Prix victory.
In 2004, Ligier returned to motorsport after acquiring Automobiles Martini. Tico Martini had designed a Formula 3 chassis introduced as the Ligier JS47. In 2005, Ligier introduced the JS49, a sport prototype made for the 2000 cc CN class.
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