Budget cap encourages Renault to remain in Formula 1

Renault

Budget cap encourages Renault to remain in Formula 1

Renault confirm a long term Formula 1 future

Sam Hall

Friday 29 May 2020 11:06

Renault has doubled down on their commitment to Formula 1, citing the new regulations and budget cap as major factors in the decision.

Renault returned to grand prix racing as a manufacturer team in 2016 having previously walked away at the end of the 2012 season.

The financial pressures of the coronavirus pandemic have placed added stress on businesses across the world, and the effects have been felt by both automotive manufacturers and Formula 1 teams alike - Williams announcing on Friday morning that the team was up for sale.

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“We confirm that we intend to stay in F1,” Renault interim CEO Clotilde Delbos told a media conference call.

“Actually the news about new regulations, new cap, in terms of investment is very good for us, because we had less investment in this area compared to some of our competitors which were spending a lot of money.

“So, F1 we are here, and we stay in Formula 1.”

The statement comes after Groupe Renault announced plans "of reducing fixed costs by more than 2 billion euros over 3 years aims to restore the Group's competitiveness and ensure its long-term development".

In a press release outlining how Renault will make the savings, Delbos added: "In a context of uncertainty and complexity, this project is vital to guarantee a solid and sustainable performance, with customer satisfaction as a priority.

"By capitalising on our many assets such as the electric vehicle, by capitalising on the resources and technologies of Groupe Renault and the Alliance, and by reducing the complexity of development and production of our vehicles, we want to generate economies of scale to restore our overall profitability and ensure our development in France and internationally.

"This project will enable us to look to the future with confidence."

Before you go...

Williams for sale as the team part ways with title sponsor ROKiT

Mercedes and Wolff quit speculation "unfounded and irresponsible"