Although retaining the unusual format of having the engine in front of the cockpit, the LMP07 was quickly found to be lacking the capabilities of its predecessor, forcing Panoz to abandon it and return to the LMP-1 Roadster-S.
Élan would also turn to Zytek for construction of a custom V8 for the LMP07, replacing the Ford-derived V8 used in the LMP-1 Roadster-S. Having already established a winning formula with the LMP-1 Roadster-S, the LMP07 can be seen as an evolution of its basic layout.
To assist in this, large vertical fins were placed on the inside of the fenders, extending off the back of the car to form the rear wing supports.
Panoz wished to use a smaller engine in order to bring down the overall weight and center of gravity of the car without major sacrifices to power output.
Running at the Race of a Thousand Years on 31 December 2000 at the Adelaide Street Circuit in Australia, the LMP07 lasted a mere two laps before the alternator failed and the car was forced to retire.
The LMP07 would finish third behind two Audi R8s and a lap ahead of the best LMP-1 Roadster-S. With the performance capabilities of the LMP07 shown, both chassis fully replaced the LMP-1s for the 12 Hours of Sebring.
When the American Le Mans Series season moved to Europe, the LMP07s were able to fix their mechanical problems and both cars finished at Donington Park.
Both cars were also slow in comparison to their contemporaries, managing to record only the 19th and 21st fastest times in qualifying, nearly ten seconds slower than the Audis.
Following the performance troubles of the LMP07, most notably at Le Mans, Panoz decided that the cars need to be reworked in order to remain competitive as well as durable.
Panoz made the decision to bring back the LMP-1 Roadster-S, completing the season with the older cars while work continued on the LMP07s.