FÓRMULA-1

Renault confirms stay in F1 despite severe economic crisis

The automaker announced that it remains committed to the F1 program for the next few years, driven by the new budget ceiling
Some time ago, there were already doubts about Renault's presence in Formula 1 in the coming years, and the economic crisis caused by the covid-19 pandemic further increased these questions, due to the impact suffered by the automaker. However, the interim CEO of Renault confirmed the company's stay in the category for the next few years.
Renault was hit hard by the crisis caused by the pandemic, and announced cutting 15 thousand jobs around the world, as part of an effort to save two billion euros (R$ 12 billion) over the next three years.
The fall of Carlos Ghosn, followed by the resignation of his successor, Thierry Bolloré, created an even greater turbulence within the organization.
Inevitably, this has put a spotlight on the F1 team that, like the rest of the company, has become part of a strategic review in recent months.
The moment was seen as ideal, due to the end of the current version of the Concord pact, which gave Renault the opportunity to reconsider its future. Along with the lack of customer teams for the automaker's power unit in 2021, the situation was easy for a team withdrawal from the category.
However, the change obtained with the 2021 budget ceiling, which was formally confirmed by the FIA this week, allowed the owners and investors of the team to have a much clearer idea about spending in the future, with the budget restricted to 145 million dollars (R $ 780 million), and falling to 135 million (R$ 720 million) in 2023.
Clotilde Delbos, Renault's Chief Financial Officer and current interim CEO, made it clear that these changes were crucial to the company's decision.
"We have said publicly and confirmed our commitment to Formula 1," she said in a call with analysts today. "The announcement of the new regulation and the spending ceiling is very good because we will have to invest less in this program."
Renault's head of F1, Cyril Abiteboul, made it clear that motorsport is an essential part of the brand.
"Motorsport has a unique value and a great contribution to it," Abiteboul told the Motorsport.com recently. "That's why we believe in it, just like we believe in marketing activities, but here it's a sport, it's a foundation of technology."
"This is racing, this is also emotion, and Renault believes in emotion. So that means a lot. And that's why we've been doing it for decades and we intend to keep doing it for a long time."
"You need a clear narrative to explain to the consumer why he needs to be interested in your brand and your product, rather than competitors. And I think what you have in your DNA, in your history and your legacy even counts more than other things." 

© Sam Bloxham / Motorsport