Renault has returned to Formula One after it finalised the purchase of the Lotus F1 team on December 18 for £1 (RM6.40). The token payment required Renault to assume the team’s debts, which had left Lotus F1 embroiled in court cases through most of 2015.
The takeover comes on the back of Renault’s split as engine supplier from Red Bull Racing. The decision to leave came after it was reported Red Bull Racing had complained about the performance of the engine.
Renault managing director Cyril Abiteboul affirmed its return to Formula One, “Renault had two options: to come back at 100% or leave. We have been successful as a competitive team before, and from a marketing stand point and connection between F1 and the rest of the business, we have never been so strong.”
The convoluted deal saw Genii Capital and associate company Gravity Motorsports holding 10% of the team, while also writing off £98.2 million (RM628 million) in shareholder loans. The 90% majority of shares is held by Grigny (UK) Ltd, the company that previously owned the team when it raced under the Benetton banner.
Abitetoul said it would take at least three years for Renault to be fighting at the front of the grid. “We have given a time frame [of three years] in the statement that was communicated by Carlos Ghosn, and we need to be pragmatic,” he said.
As reported by motorsport.com, Abitetoul is confident that the team has a good business plan in place to tackle the 2016 season. “What should not wait is the capacity of Renault to turn what we do on the track into tangible marketing value for the group and for the brand. That is really important, as that is what will give us the stability so that we have the capacity – the financial capacity and also the time – to become one of the big boys,” said Abitetoul.
Further details about the structure of the Renault Formula One team are expected to be released at a press conference in February 2016. It was reported that Jolyon Palmer, son of former Formula One driver Jonathan Palmer, would replace Romain Grosjean, with Pastor Maldonaldo taking the other seat.
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with bad management, everything is sold by value of 1.
Malaysia GLC is expert in “creating” debt..
The day Proton will be sold with RM1 is not long. You don’t pay money for junk, so does Proton.
I wun even pay 50sen for a 10-year-old-and-counting chassis, geriatric transmission, dinosar engine, with safety standards that makes it a danger to those who dare to sit inside these milotins even when the engine is off.
@John; Are yout alking about Proton? Because those accusations seems to be leaning at PERODUA too. But of course Peradus has the almighty Toyota DNA so Peraodua has to be perfect isn’t it?…
1-malaysia ma…….
This proves that not just malaysian companies that sells for $1 only. Bashers now can come out from cave liao
Lotus owned by Proton. Sold Augusta for 1 Euro. Now sold Lotus F1 for £1. Still need support from tax payers money. Better close shop. Lotus restoran doing very well but not under Protong.
Lu bodoh ke bangang tak tau google? Lotus F1 has no connection to Lotus Cars or Proton. At most P1 just license the name to the team to use.
I kno it makes for a catching headline.. But its just not true n kinda misleading… If u buy its debts then u simply buying the company as well if its valued as much as its assets… In accounting terms there is no such thing as Renault bought Lotus F1 for 1pound…
If lotus f1 didnt hve any debts, then Renault wd have to pay the full amount for it…
Renault usually dont stay very long term with one works team n hve a history of flip flopping their f1 strategy.. I hope it works.. Bcos thy hav the track record to take the fight to the established Kingdoms of Ferrari and Mercedes… I still wonder if the Lotus name still be in next years official team name..