So Renault wants out?
December 3, 2009 by Negative Camber
Filed under F1B Op-Ed, Negative Camber, Parc Fermé, Prime & Option
Renault’s executive committee is meeting today to discuss their future plans for F1. You may recall that the decision to remain in F1 was postponed at the last emergency executive meeting earlier this fall but it now appears that Renault may have made up its mind.
According to the BBC, L’Equipe says Renault is doing a deal with Dave Richards to acquire the team and participate in F1 as Prodrive. There is little doubt that Prodrive has been angling for a position in F1 for some time and a Prodrive spokesman said:
“We cannot comment on the Renault situation, but it is well known that our intention is to get back into F1. We proved our credentials earlier this year when we had a strong business case for an entry, but having had an engine deal with Mercedes-Benz in place we were not willing to sacrifice our competitiveness.”
The concept is simple really and something we proffered on Podcasts in the past. Renault may want out of F1 as a team but would be willing to remain in the sport as an engine supplier. It’s a good move if they can find a buyer for the team. Some rumors had the team being sold for an exonerated Flavio Briatore to return to but Prodrive seems to be a logical move.
The withdrawal from F1 has legal implications as Renault are signatory to the Concorde Agreement just as Toyota was. The FIA is still seeking its remedies regarding the Toyota withdrawal and Renault would be keen to avoid the legal entanglements if at all possible.
The executive board of Renault would have to approve the sale of the team to Prodrive and the FIA will have to approve the change of ownership as it applies to commercial rights money and a guaranteed position on the 2010 grid. But my question is this:
“What exactly is going on in F1 when teams, knowing they are signatory to the Concorde Agreement until 2012 and that there is a withdrawal penalty in the agreement, are choosing to leave the series? They all signed the Concorde Agreement a few months ago and the economic impact was as grave then as it is now so what has changed?”
Color me reactionary but something doesn’t connect for me on this issue. BMW, Honda, Toyota and Renault all leaving F1. Honda makes some sense to me but the others do not. Something is amiss and while I am willing to concede the fact that the FIA/FOM/FOTA war was brutal and there is little doubt that Max Mosley and Bernie Ecclestone desperately needed to eliminate the manufacturer power base in F1 by ushering in new privateers; something is still amiss.
They may have succeeded in rendering FOTA powerless by getting them to sign the Concorde Agreement but what exactly is pressing teams who signed the agreement to recant and leave the sport? Renault’s CEO Carlos Ghosn said recently:
“F1 is one of the most-seen spectacles in the world,” he told Forbes India magazine. “It is facing some challenges: Challenges on how fair it is and how do you marry F1 with the environmental concerns. Can you bring zero emission through technology? So there are lots of questions about F1.”
“I notice that in the last year, three car manufacturers have bowed out of F1. Three in one year! That means there are a lot of questions that we need to resolve.”
It was certainly a foreshadow of his thoughts on F1 but could it be the sole reason for the departure? If BMW, Renault, Honda and Toyota want to hang their decision on leaving so they can be more green; I am appalled. I have a new respect for Mercedes and Ferrari if this is the case. Renault’s decision to leave the sport but provide engines, while logical, is even more insulting.
As a fan, I must say that the car manufacturers are seriously damaging their brand equity in my eyes. They were the stalwarts of F1 and the leaders in the series and now they bow out, cower and run from F1 because it’s not green? Bollocks! They run because Ecclestone and Mosley intimidated them with an onslaught of privateers? That’s weak.
I suspect they all feel a changing of the times in that the privateer model may be the only sustainable concept left for F1 at this point in time and that’s even more disheartening. No one likes a good privateer more than I do but we need both privateer and manufacturer in F1.
This sport gets curiouser and curiouser by the day doesn’t it?
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If Renault call it a day then F1 might be never the same again. Even Ferrari doesn’t want to compete with the Camposes or Lotuses (not the car brand)
Renault came and went as a full F1 team from ’77-’85 – 8 years. They again came and went as a full team from ’00-’09 – 9 years. In between they were an engine supplier from ’89-’97 – 8 years.
I don’t see a potential departure as a really bad thing for F1 in the bigger picture, especially if Renault stay on as an engine supplier (and especially, especially if retained by Red Bull and the next WDC, Seb Vettel). After all the Williams-Renault of the 1990′s was certainly not chopped liver and no one was disparaging Renault for being “just a supplier” back then.
Toyota? What, with no wins and only 3 poles from ’02-’09 how are they considered stalwarts of F1? Seven years with little success is chump change considering modern F1 has been around for 60 years.
BMW is a little different. They had modest success as a full F1 team, and even greater success as a supplier. But there was something funky going on in Munich.
In the latest F1 Racing magazine, the publication alleges that after Kubica’s and the team’s first ever pole position at Bahrain in ’08, Kubica was “asked by management not to win the race because it would artificially raise expectations at board level.” This is not coming from Kubica, but from the writers of the magazine. And if this allegation is true, then the current BMW is not the type of organization that F1 should hang their hat on either.
Bernie should use his inflence and get Senor Briatore Out of Jail Free. He is the oly one capable to taking the Renault Team off Renault’s hands and making a go of things. Dave Richards will probably want financial Aid from Bernie if he gets to run Renault. Come On Bernie, go down to PAris and tell the Judges where to stick it when it comes to Our Beloved Briatore. If Renault quits, we need Briatore to run the rebranded independent team and not someone with Cap in hand asking for financial assistance at every opportunity
Renault have been one company who either believes or knows that being just an engine supplier is an advantageous thing in the world market place. Can being just a supplier actually be worth it for a company? Do people buy Renault’s because they know the company makes F1 engines?
I dont buy Renaults because they are too expensive.
Can a supplier make a go of it alone? I remember Honda were very successful with McLaren in the late 80′s and everyone knew their name.
Renault were very well know in their Willams days too.
Side note: Now that engines are restricted to 8 per year and no development is allowed, Renault will have a massive drop in their budget compared to running a team. It was only a few years ago that Honda were producing 100 engines per season. ONE HUNDRED!!!
Now the customer teams will be paying for theengines too.
With RBR and now Prodrive (I assume) using the Renault engines, they will get plenty of publicity. RBR being a front running team with a great driver like Webber… Apparently that Vettel fella is quite good too and Prodrive having been in the news for the last forty thousand seasons Renault will get plenty of coverage.
Back in the day of the one-lap specials, Derek Warwick claimed his Renault qualifying engine produced 1550bhp.
Imagine that power in todays cars. I bet if you removed the rev limit they V8′s would be pulling 22-23K revs and 1100/1200 BHP.
Interestingly the restricted engines are touted to be making 800-850HP… NASCAR is producing 880HP… Just dont tell anyone.
It’s not like Renault can just walk away from “formula” racing. In addition to F1, Renault supplies GP2, and is deeply involved with Formula Renault 1.6, Formula Renault 2.0 and World Series by Renault. So remaining in F1 as a supplier still fits in with the company’s presence in single-seater motorsports.
If this keeps up Kubica is going start thinking it has something to do with him
“Color me reactionary but something doesn’t connect for me on this issue. BMW, Honda, Toyota and Renault all leaving F1″
Well isn’t it obvious? They are starting a ‘Break-away’ series. No-one told Mercedes or Ferrari though. Shhh, its a secret.
So Dave Richards wanted to use Mercedes engines… Now he buys Renault. So will he use Renault motors? I assume that’ll be part of the deal.
I think Renault will have an easier time of leaving compared to Toyota. They (Toyota) left completely without organising anyone taking their spot. Renault could get away with this sale by basically changing their name.