RE: Renault F1 return
Monday 28th September 2015
Seldom has such a small press release marked such a potentially huge story. Renault should be back in F1 from next season, taking a controlling stake in Lotus and marking the first factory Renault team in F1 this decade. This announced in just 115 words.
The glory days of 10 years ago!Well we're not there just yet. Renault Group and Gravity Motorsport S.a.r.l have signed a Letter of Intent 'regarding the potential acquisition by Renault of a controlling stake in Lotus F1 Team Ltd.' But all parties are working towards a 'definitive transaction', the implication being that Renault F1 will happen unless something completely unexpected happens.
Renault F1 return
Renault signs a Letter of Intent for a controlling stake in Lotus, should be back on the grid next year
The glory days of 10 years ago!
Renault has been involved with F1 since 1977 as a manufacturer or engine supplier. Occupying the latter role at present has been fraught with controversy, Red Bull adamant that the majority of its problems are caused by Renault engines. With Renault moving back to full competing manufacturer, Red Bull will have to sort out some new engines very quickly. And will the full Renault F1 outfit be faster than the Renault-supplied teams?
With nothing more than a letter signed at present there will be a lot more to find out over the coming months. Can they make a better job of hybrid F1 than McLaren-Honda? What about a glorious Alonso return? More to follow as it's announced!
 |
 |
[Photos: LAT]
Discussion
GTEYE said:
Can Renault really afford to do this?
It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
I didn't think they Renault were ailing? On another thread discussing the Red Bull engine mess someone said they were doing ok.It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
Quite. They have bounced back well from the rock bottom they hit a few years ago - as partly indicated by the number of Capturs on the road! The new Kadjar will steal sales from the Crashcar and there were millions of those on the road when the Mk2 was released a couple of years ago. The outgoing Megane was a good seller and the new one will probably be too. Its a shame that the latest Espace and Talisman aren't coming to the UK.
GTEYE said:
Can Renault really afford to do this?
It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
Given the growing role of hybrid technology and Renault's own electric car offerings, I can see a benefit. Might not be any direct technology transfer, but I could easily see success on F1 being used to push their future electric and hybrid offerings. Depending on how big the fallout is from the VW scandal, it could also be a very shrewd way of distancing themselves from a possible backlash against diesels.It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
GTEYE said:
Can Renault really afford to do this?
It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
They're not actually putting a lot of their own money into it. They've negotiated a deal with Bernie's Bankers to get some enhanced payment terms over the next five years, and for the immediate future have Maldonado and Total's money coming in, and a Red Bull divorce settlement to top things up. They also anticipate making F1 engine sales once the programme is back on track.It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
So they can afford it in the short term, yes, but on the other hand it doesn't speak well for their commitment or chances if they aren't putting huge resources behind it. Having said that, the engine isn't as bad as Red Bull have been shouting about, and while fitting into 2016's "Lotus" might compromise things, fundamentally speaking they and the boys at Enstone know which way is up - they could be pretty competitive come 2017ish.
GTEYE said:
Can Renault really afford to do this?
It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
To quote James Allen's blog today:It seems like a bit of a vanity project that will produce little in the way of corporate benefit for an ailing manufacturer.
JA on F1 said:
Renault has stated that they wanted to move away from being an engine supplier after the breakdown of relations with Red Bull, but that doesn’t mean that they will not supply customer teams in addition to their own works outfit in future. Quite the reverse: like Mercedes, they will want to generate the income from supplying engines to other teams again, once the works team has been established and the hybrid engines have been made competitive, which may not take as long as some critics have suggested.
The goal will be to raise the portfolio of sponsors, sell engines to two or three teams and get to the point where the net spend is around $120m to $150m per season. At that level F1 makes sense for manufacturers with the massive exposure it will give the brand. Looking long term, if diesel technology is going to become unfashionable, which seems to be the message from the VW emissions scandal, then F1 is the best possible shop window for petrol hybrid turbo technology. From a strategic point of view, Renault could be doing the right thing at the right time.
The goal will be to raise the portfolio of sponsors, sell engines to two or three teams and get to the point where the net spend is around $120m to $150m per season. At that level F1 makes sense for manufacturers with the massive exposure it will give the brand. Looking long term, if diesel technology is going to become unfashionable, which seems to be the message from the VW emissions scandal, then F1 is the best possible shop window for petrol hybrid turbo technology. From a strategic point of view, Renault could be doing the right thing at the right time.
Not sure
The Renault statement suggest they are buying a controlling stake and not the whole shebang.
The Renault statement suggest they are buying a controlling stake and not the whole shebang.
- My View**
andburg said:
Renault are doing well financially, despite the falling uk sales I believe they have a growing presence in emerging markets with Dacia.
I thought I read somewhere that the biggest selling product in the "Renault Group" was in fact the Dacia Duster *, so that may well be true.* May have actually been the sandero, tbh, can't remember
Leggy said:
So what happens to the Lotus brand name? Who owns it as I assume it's not the car business any more.
Which Lotus brand name ? AFAIK the Team Lotus name is still somewhere in the Fernandes/Hunt mess, but may have timed out due to non-use. (I believe that's what happened to the logo).
Lotus Racing went when the branding deal wth Fernandes went sour.
The Lotus F1 brand on the current cars is provided by some part of Group Lotus as part of a loan/finance/branding deal with the Enstone team.
andburg said:
Renault are doing well financially, despite the falling uk sales I believe they have a growing presence in emerging markets with Dacia.
Renault UK sales have been growing faster than other manufacturers in the last 2/2.5 years.Globally the Renault group are doing very well for themselves.
ELUSIVEJIM said:
If Renault are coming back to F1 I am very surprised they did not sign Grosjean for the 2016 season especially with him being French.
Saying that I am sure Alonso and Button would be free
When you say "free", I assume you mean "very expensive due to the fact that they will have to break the contract with McLaren"?Saying that I am sure Alonso and Button would be free
Gassing Station | General Motorsport | Top of Page | What's New | My Stuff