Prost used 'Gauloises' logos, except at the French, British and German Grands Prix.

The AP01 was the first-ever Prost car to utilize Peugeot V10 engine factory works deal that started in 1998 season and thus earned direct factory support from Peugeot.

After the good results of the previous season, 1998 was a disaster for Prost. The AP01's main weakness was its gearbox: it was unreliable and heavy, which prevented the team from finishing races, upset the balance of the car and meant that the team could not optimise the position of its ballast, as many of its rivals could. It was Jarno Trulli who first identified the balance problems with the rear end of the car. The AP01 had a major overhaul before the Canadian Grand Prix, with the rear suspension being completely revised. The team also scraped into the season by a narrow margin after the chassis failed the mandatory FIA crash test three times.

With these problems allied with the relocation of the team's factory nearer Paris, the year turned into an exercise in damage limitation. A single point was scored for sixth place, at the chaotic 1998 Belgian GP, giving Prost 9th place in the Constructors' Championship. Only 8 cars finished the Belgian race with the two cars behind Trulli having spent so long in the pits being repaired their drivers were able to get out of the car for some time. In the final 6 laps Trulli lost an entire lap to the front runners with engine problems but still managed to finish. .For the first few races, X-Wing's were used, but they were banned after the San Marino GP.