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The Peugeot driver clinched victory by seconds
The seventh stage of the Dakar rally in Bolivia saw Peterhansel drop down the rankings with a breakdown and Peugeot team-mate Sainz move into the lead
Sainz won in the auto class although France's Stephane Peterhansel remains in the lead overall.
Loeb was forced to drop out after his vehicle fell into a sand crater injuring his co-driver. Portuguese football coach Andre Villas-Boas also withdrew after hurting his back.
KTM rider Sam Sunderland was airlifted to hospital with a back injury, paving the way for Yamaha rider Adrien Van Beveren to take the stage and the top spot overall.