Formula 1 in crisis updated, manufacturers reeling from Covid 19 lockdown – Yesterday, TJ13 reported on a rumour, and a very likely true rumour, that Renault seeks a fast sale of their F1 team.
Allegedly, there have already been talks between parent Renault and a buyer who is actively seeking financing according to F1 podcast Missed Apex, who regularly interview guests such as Formula 1 journalist Joe Saward and ex Lotus (now the current Enstone based Renault F1 team) team boss Matthew Carter.
Missed Apex understands that Renault have actively reached out to at least one viable entity to sell their F1 team but any deal must involve keeping the Renault power unit
— Missed Apex Podcast (@MissedApexF1) May 20, 2020
The ditching of the Formula 1 team would depend on what conditions the French government place on their 5 billion Euro bailout agreement.
If the speeches promise to be reassuring for the moment at Renault, one can question whether the termination of the F1 project would not be a possible solution based on three main factors in the eyes of Renault’s Board of Directors. These factors were discussed on TJ13 yesterday, you can read them by following this link.
Yesterday, France’s Minister of economy and finance Bruno Le Maire detailed the situation with Renault’s bailout and was reported by the French news website Europe 1.
In it, Le Maire describes how deep the crisis truly is the French manufacturer, and one really has to wonder just how viable keeping a Formula 1 team is.
The end statement regarding the likely way out of the crisis is to be at the forefront of electric vehicles, is not exactly a Formula 1 friendly statement.
Below is a direct translation of the article mentioned above.
“Renault can disappear…”
“Yes, Renault can disappear, you have to be realistic,” says Bruno Le Maire.
Bruno Le Maire, Minister of Economy and Finance, was the guest of Europe 1 on Friday morning.
He spoke about the situation of Renault, in a very bad situation following the coronavirus health crisis.
“There is an urgent need to act”, warns Bruno Le Maire, Minister of Economy and Finance, guest of Europe 1 on Friday morning.
“Renault may disappear, the major industrial manufacturers may disappear, we must be lucid”, he said, adding: “I have never hidden the seriousness of the crisis, and I do not hide the seriousness of the situation of Renault.”
Renault, France’s industrial flagship, is in a very bad situation, having seen its factories and sales network paralysed by the coronavirus crisis and the confinements decided upon, particularly in Europe, which caused the new car market to fall by 76.3% in April.
The group was already weakened before this episode, having suffered its first net loss in ten years in 2019.
“But I also know that Renault has exceptional resources, exceptional technologies, motivated employees and competent workers,” the minister said.
According to him, the company “can and will bounce back” if it defines a strategy. ” And the strategy that seems to us to be the right one for Renault, as a shareholder state, is to make it one of the most technologically advanced manufacturers on the planet,
“at the forefront of electric vehicles,” he explains.