Renault closes in on final F1 future decision

Renault is set for a crunch weekend of talks in Hungary about its future in Formula 1, as it closes in on a decision about whether to stay in the sport.

The French car manufacturer has been evaluating its options for several months now, eager to get more of a marketing return for its investment in F1.

While a complete withdrawal cannot be ruled out, especially on the back of its disappointing results so far this season, understands that its primary focus remains on sorting out a deal to buy the Lotus team.

Sources suggests that discussions with Lotus and its shareholders are now at an advanced stage, and Renault management is trying to put together the finishing touches to a financial package that will make sense when presented to Renault CEO Carlos Ghosn over the summer break.

Income stream

Key considerations are securing a decent income base, which will ease the justification for Renault to ramp up its investment in F1.

One of the core components of this is believed to be a push to change the bilateral commercial rights deal that the current Lotus team has with Bernie Ecclestone.

Sources suggest that if Renault agrees to buy Lotus, it wants to join the likes of Red Bull and Mercedes in being granted extra historical prize-money. The matter is likely to be discussed at the Hungaroring between Renault and F1's owners CVC.

As well as a commercial rights boost, it is understood Renault is putting together a package of sponsorship that will further ease its burden.

It could choose to take drivers with significant sponsorship backing – like Pastor Maldonado or Sergio Perez - and it may also give a significant brand presence to Red Bull's current title sponsor Infiniti.

However, if the deal goes ahead, it is understood that its car will be predominantly yellow and black, with big Renault branding.

Ghosn is set to be presented the Renault plans over the next few weeks, with a decision expected to be made about what he chooses to do before the end of the year.

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About this article
Series Formula 1
Teams Red Bull Racing , Toro Rosso
Article type Breaking news
Tags renault