Renault: Ghosn gives himself three years to be competitive… without Palmer and Maldonado?

The long-awaited news was officially announced yesterday: Renault is buying Lotus F1 Team and will make its grand return as a full-fledged constructor starting in 2016. Carlos Ghosn, CEO of the Renault-Nissan group, made this decision knowingly. He justifies it today in the columns of Le Figaro: « The position of engine supplier does not allow for sufficient return on investment. We therefore conducted an economic analysis, but there was also a reflection related to Renault’s history. Renault has been associated with Formula 1 for 40 years. We are the second manufacturer to have won the most races and titles in Formula 1, behind Ferrari and ahead of Mercedes. There is an attachment to this competition internally, and I have also been able to gauge how much attachment there is to Renault from the members of the Formula 1 world, both from the FIA, FOM, and even from a number of competitors. »

Renault’s return was also made possible by negotiating advantageous agreements with the FOM and Bernie Ecclestone. As a historic team in the discipline, the brand with the diamond logo should receive bonuses on its commercial rights. Without revealing the amounts involved, Carlos Ghosn disclosed that a number of agreements obtained allow Renault’s return under favorable conditions. The distribution of gains from TV rights is more favorable today than it was in 2009. This was the sticking point that had long blocked Renault’s return. The negotiations conducted in Abu Dhabi by Jérôme Stoll, the Group Commercial Director and President of Renault Sport, were decisive in this regard.

Formula 1 is also an excellent way for Carlos Ghosn to develop the group’s business strategy in emerging markets: « We need to strengthen the Renault brand in these markets. The Renault Formula 1 team will be an excellent way to do so. It is a very important competition in these emerging countries. In Europe, it is also very popular, but the Renault brand is already very well-known. Worldwide, there are 450 million annual viewers, despite the limitation of broadcasting to pay channels. It is very important. And Renault will be the only generalist brand present in Formula 1 with its own team. »

But to give a good image of the diamond-shaped brand, solid results will be necessary. Renault bought Lotus late in the season, and 2016 therefore looks more like a transitional season. Carlos Ghosn is not putting pressure on his new men in Enstone and is giving them three years to be competitive.

As for the driver duo for 2016, Lotus, desperately lacking funds, had already signed the Maldonado-Palmer duo. Will Renault seek to change a pair that is said to be too inexperienced, at the risk of a legal entanglement? Carlos Ghosn refers the matter to the beginning of next year: « We must wait a few weeks. I will see you in January 2016. We will explain the organization, the goals, the drivers, the strategy, the partners ».

Anything is still possible…