Renault set to takeover struggling Lotus F1

Renault has announced its decision to buy the struggling F1 outfit Lotus, with the engine manufacturer now making its full return as a works team from the 2016 season onwards.

Although Renault has been connected with the sport since 1977, it has undergone various periods where it only supplied engines to teams, and at times, participated in championships as a constructor. It last participated as a constructor in the 2010 season, after which a new majority stake owner, Genii Capital, took over the team. The team was then called Lotus Renault GP in 2011, before becoming just Lotus from 2012 onwards.

Lotus had been struggling financially in the past few months, and is also involved in a court battle with British tax authorities over unpaid taxes. It has been counting on a takeover by Renault to help win the court battle with the threat of administration looming strong in recent weeks.

Its employees were even locked out of the hospitality centre in Japan last weekend as payments were late, and incoming freight was also delayed. The crew were instead taken care of by F1 chief Bernie Ecclestone, with other teams in the paddock also chipping in with food and drink for the Lotus employees. The team conducted its media conferences in the paddock as it was locked out of the hospitality centre. Earlier in the season, Pirelli had withheld tyres from Lotus due to unpaid bills, a matter which was only resolved just before the start of free practise.

"Renault Group and Gravity Motorsports S.a.r.l., an affiliate of Genii Capital SA, are pleased to announce the signature of a letter of intent regarding the potential acquisition by Renault of a controlling stake in Lotus F1 Team Ltd. The signature of this Letter of Intent marks Renault's first step towards the project of a Renault Formula 1 team from the 2016 racing season thereby extending 38 years of commitment of the brand to the world's premier motorsport championship series,” Renault announced in a press release.

Lotus has already confirmed that Pastor Maldonado will drive for the team in 2016 as well, with the second driver expected to be announced soon.

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