F1: Will Renault Finally Buy Out Lotus?

Jerome Miron-USA TODAY Sports

With a lot of the formula one silly season rumors at full force, the biggest one could become fact just before the Italian Grand Prix next weekend.

According to Ian Parkes, journalist of website autosport.com, Renault should make their announcement to purchase 65 percent of the debt ridden Lotus F1 Team, which would save the Enstone team by preventing them from becoming insolvent. A report of around 80 million U.S. dollars would be put up front by the French manufacturer, followed by an additional 10 million dollars per season, and would last at the minimum level of 10 seasons.

More from Formula One

Gerard Lopez, the current owner of Luxembourg based Genii capital, who bought the team from Renault in 2011, now will retain a quarter of this team, and is rumored to be a consultant for the squad. Ten percent of the deal in this department will be run by four time world driving champion Alain Prost, who is currently the Renault team ambassador.

Current Renault CEO Carlos Ghosn has in addition negotiated with the company board to adapt a full sponsorship package that would put it in comparison to the present works teams of Mercedes and Ferrari. Renault themselves are scheduling a press conference for August 31^st, with a few days of completing documents to finalize the deal, which could take a few days to complete.

This deal alone will alter the situation for current drivers Romain Grosjean and Pastor Maldonado. It is certain that even if both drivers are contracted for next year, Renault might not retain their services. Grosjean, who is French, should stay on, especially after finishing on the podium at the last race in Belgium. But the Venezuelan, is a different story. For Maldonado, this contract comes from an oil deal from the biggest firm in his country, PDVSA, and it could be crucial for him to retain one more season. But Renault could buy his contract out and send another driver along with Grosjean. It still remains to be seen.

The big deal for this contract is the current involvement with Red Bull Racing and Toro Rosso, who Renault currently supplies engines to. But this is something that involves priority for Red Bull, which does not fit well since the team has not approved of Renault’s performance for the last two seasons with their hybrid engines.

There are many other options available for this— the best option would be to continue supplying engines until the term runs out at the conclusion of next year. Other situations that have been offered is for Mercedes to continue supplying the engines for one more season until Renault has full control of its works team in 2017. But this is a far-fetched idea to supply German engines on a French car. They are both car manufacturers and it does not seem right.

However, Renault and Mercedes have a road car affiliation with each other, and this could push Renault to find Red Bull and maybe even Toro Rosso perhaps, to conclude an engine deal with Mercedes.

In many ways, the works deal for Renault means that another car manufacturer will be on the formula one grid, and more could follow if extreme costs can lower, which could bring them back to motor racing’s most prestigious formula.

Home/Formula One