Renault will maintain its presence in Formula 1 after deciding to sell a big stake of its F1 team to Genii Capital, a Luxembourg-based firm specialising in new technologies, brand management and motor sport. According to UK’s Financial Times, Genii has acquired a 75 per cent stake. Both partners will operate the team together.
It’s status quo for the upcoming season, as Renault F1 Team will retain its name and identity and will carry through with development of its 2010 car. Renault has also commited to supply engines to Red Bull Racing for 2010.
The high cost of racing in F1 is the main issue that Renault and manufacturers that have left the sport face. But the French company explains that cost reduction measures have already improved significantly the operating cost base. And with the anticipated sale of a stake in its F1 base at Enstone UK to Genii Capital, participation in F1 has become more affordable for Renault.
It’s great news to hear that a car manufacturer is willing to sacrifice full control in order to remain in F1. If only BMW, Toyota and Honda followed this route.