Renault to stay in Formula One with new investor
The French Renault car company today announced during a press conference in Paris they have decided to stay in Formula One, but have sold a 75 percent stake to the Luxembourg Genii Capital Investment company led by Luxembourg businessman Gerard Lopez. The Renault team will in 2010 still be operating under the name Renault and will also retain its corporate identity, and the sister company in Viry-Châtillon, which will remain a 100 percent Renault company and is not included in this deal, will supply the engines for both the Renault and Red Bull Racing teams.
What the future of the team will be after 2010 was not revealed, but Renault has signed the 2009 Concorde Agreement and is therefore committed to Formula One until the end of 2012. It is also believed that Renault opted for selling 75 percent of its Formula One activities because it is cheaper than to quit the sport and pay millions to the FIA, FOM and others for breaching their contracts.
A similar arrangement was made when Honda decided to quit the sport, and instead of selling the team, they opted for the Ross Brawn buy-out. Renault now only pays 25 percent of the team's budget, and they will keep their name in Formula One, and that also still keeps the door open for a full return if the economic climate and car sales would improve.
Although the names of possible buyers were kept secret, Genii has in fact beaten another prospective buyer, the Prodrive motor racing team led by Briton David Richards. Renault President Carlos Goshn has approved the deal himself and Bernard Rey, Renault F1 Team President, today said: "I am delighted to welcome Genii Capital as our new strategic partner as I am sure that their enthusiasm and business expertise will create a new dynamic for the team, the staff, and our partners."
Source: Renault to stay in Formula One with new investor
What the future of the team will be after 2010 was not revealed, but Renault has signed the 2009 Concorde Agreement and is therefore committed to Formula One until the end of 2012. It is also believed that Renault opted for selling 75 percent of its Formula One activities because it is cheaper than to quit the sport and pay millions to the FIA, FOM and others for breaching their contracts.
A similar arrangement was made when Honda decided to quit the sport, and instead of selling the team, they opted for the Ross Brawn buy-out. Renault now only pays 25 percent of the team's budget, and they will keep their name in Formula One, and that also still keeps the door open for a full return if the economic climate and car sales would improve.
Although the names of possible buyers were kept secret, Genii has in fact beaten another prospective buyer, the Prodrive motor racing team led by Briton David Richards. Renault President Carlos Goshn has approved the deal himself and Bernard Rey, Renault F1 Team President, today said: "I am delighted to welcome Genii Capital as our new strategic partner as I am sure that their enthusiasm and business expertise will create a new dynamic for the team, the staff, and our partners."
Source: Renault to stay in Formula One with new investor
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