However, the 27-year old Australian retains his fourth place in the World Rally Championship, after 11 of the 15 rounds.
The final day of Rally New Zealand was a short, sharp affair, but was far and away the most dramatic and spectacular of the rally.
Atkinson and co-driver, Stephane Prévot, started the day well, with the second fastest time on the opening stage, but their improved form was not to last. They were forced into retirement after they nudged a bank on the inside of a corner and damaged their radiator.
Atkinson was unable to re-start the Subaru’s engine, and was left on the sidelines for the remainder of the rally.
“Okay, this weekend has been tough for us, especially after our third position on the last gravel rally in Finland,” Atkinson said.
“It’s disappointing that we had to retire today. We were testing some suspension components, and under braking the car slid straight on and we nosed into a bank and damaged the radiator, so that was it.
“Now we have a little gap to look at what we can do ahead of the next event in Spain.”
Atkinson’s team-mate, Petter Solberg, moved from sixth to fourth on the final day as the leaderboard was turned on its head on the dramatic penultimate stage.
Rally leader, Mikko Hirvonen, punctured a tyre on the 30 kilometre stage, while his Ford team-mate, Jari-Matti Latvala, retired with engine failure, handing victory to World Champion Sebastien Loeb.
The World Rally Championship heads to Spain next for Rally Catalunya Costa Daurada. The penultimate asphalt rally of the year, it will be the second tarmac rally for the new Impreza WRC2008.
A flat-out blast through the fast and flowing mountain stages of Tarragona, Catalunya is the quickest asphalt rally of the year and also the most similar to a circuit race, characterised by wide smooth roads and sweeping corners.
Repco Rally New Zealand
Final Results, after Leg 3
1. Sebastien Loeb (Citroen C4 WRC) 3h59m18.9s
2. Dani Sordo (Citroen C4 WRC), +17.5s (diff to 1st)
3. Mikko Hirvonen (Ford Focus WRC), +41.5s
4. Petter Solberg (Subaru Impreza WRC2008), +2m48.9s
5. Urmo Aava (Citroen C4 WRC), +3m30.7s
6. P.G. Andersson (Suzuki SX4 WRC), +7m37.4s