Lotus F1 suffered huge financial loss before takeover

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Recently published accounts have revealed that the Lotus F1 team, then owned by Gravity Motorsports and its affiliate Genii Capital, sustained a huge £57 million loss at the end of 2015.

The main culprit of the team's reduced turnover and the subsequent loss, which increased from approximately £5.75 in 2014, was a substantial decrease in sponsorship according to the company's official report.

Lotus also claimed that cost of sales fell by £11m, as a result of "the difficult season and associated budgetary constraints faced by the company during the year up until the takeover".

The company noted however that "the financial statements shows a positive movement in shareholders' funds of £76.1m", an inflow related to Renault's takeover of the entity.

The report also offers some insight on the French manufacturer's strategic view for 2016 which is "to reconstruct the company with the right level of spend, investment and new working practises to reflect Renault's long-term sporting ambitions and strict business plan".

It also stated that "on track, improved performance is expected to be achieved in the second half of the season.

"However, due to the handicap resulting from the lack of development during the 2015 season, the team do not expect to improve on the prior year's championship position [of sixth]."

Renault is currently underperforming its target as it lies ninth in the constructors' standings with just 6 points.

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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.