Categories: F1 News, Reports and Race ResultsRenault

Renault buys Lotus for a token

40

According to company accounts, Renault paid just £1 to take over Lotus and return as works team to Formula 1.

The French manufacturer purchased a 90 percent stake in the team, while previous owner Genii Capital, along with its subsidiary Gravity Motorsports, retain a 10 percent interest.

The sophisticated deal saw Genii forced to write off an estimated £98.2 million in shareholder loans in order to allow Renault to start from a clean financial slate.

The write-off is also most probably why the Luxembourg based holding has retrained a minority interest , in order to one day recover part of its sustained losses.

Renault acquired Lotus through its wholly-owned Grigny Ltd UK affiliate, the company that previously owned the team which raced under the Benetton banner.

Renault Chairman and CEO Carlos Ghosn has given the French manufacturer three years to fight its way up to the head of the grid.

Renault F1 managing director Cyril Abiteboul is confident that the newly formed works outfit, which will field Jolyon Palmer and Pastor Maldonado in 2016, has all the right ingredients to succeed.

"What should not wait is the capacity of Renault to turn what we do on the track into tangible marketing value for the group and for the brand," Abiteboul said.

"That is really important, as that is what will give us the stability so that we have the capacity – the financial capacity and also the time – to become one of the big boys."

Best of 2015 ... Crashes

2015 F1 technical review

2015 F1 season: F1i's drivers review 10-1

2015 F1 season: F1i's drivers review 21-11

Use the red tabs on either side of the screen to scroll through more Formula One news and features

Click here for a gallery of the McLaren MP4-X

Keep up to date with all the F1 news via Facebook and Twitter

Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.