The French manufacturer said overnight that, while the takeover is not yet complete, contracts were signed with the Lotus team yesterday (December 3).
The announcement came ahead of Lotus having to assure a British court on Monday that it can pay debts of at least £10 million (A$20.65 million) to creditors other than Renault, to which it reportedly owes a similar amount on loans over the past two months.
If Lotus could not satisfy the court it could meet its debts it would go into administration and lose all its entitlements to monies from the F1 financial “pie”.
Contrary to a statement mid-year that it would no longer supply customer engines to F1 teams beyond this year, Renault will continue to provide its 1.6-litre hybrid power units to Red Bull Racing next season.
While that has not been officially announced, it seems that RBR – which won four consecutive world championships with free Renault engines in 2010-13 at the end of the V8 era – may now have to pay as much as US$35 million (A$47.75 million) for those units.
And they may be branded TAG as the Techniques d’Avant Garde company of French-Saudi Arabian entrepreneur Mansour Ojjeh is in the process of unwinding its long association with the McLaren team and switching its allegiance to RBR.
The TAG name appeared on Porsche engines used by McLaren in the 1980s. Ojjeh has been a 25 per cent shareholder in that team, but is selling that stake. TAG is now primarily an aviation company, with luxury watchmaker TAG Heuer owned by Louis Vuitton Moet Hennessy since 1999.
While RBR has been unhappy at having been overtaken by Mercedes and Ferrari in the two years of F1’s hybrid power units, Renault felt aggrieved that it did not receive adequate recognition for its part in RBR’s success and that it has had to bear the criticism that has come with the loss of competitiveness since.
“As a full team, Renault will take maximum benefit from its victories,” the French company’s announcement overnight said.
“The payback as an engine supplier proved to be limited.
“The return on the investment necessitated by the new engine regulations and the return in terms of image were low.”
Renault chairman and chief executive Carlos Ghosn said the decision was about the company “competing successfully with its own team in a financially sound way”.
Although the statement made no mention of it, Renault is believed to have negotiated a payment of US$100 million over the next five years from F1 boss Bernie Ecclestone for its historic contribution to the sport.
It has been part of 12 constructors’ world championships in almost 40 years of participation.
The “historic contribution” payment may have been slashed by US$35 million in recent days once Ecclestone knew that RBR would be paying Renault for its power units next season.
Nonetheless, Ghosn said: “Renault had two options: to come back at 100 per cent or leave.
“After a detailed study I have decided that Renault will be in F1, starting 2016.
“The final details supplied by F1’s main stakeholders gave us the confidence to accept this new challenge.
“Our ambition is to win – even if it will take some time.”
Its team will be that with which Michael Schumacher won the first two of his seven world titles – it raced as Benetton and in 1994 “Schumi: had a Ford engine but in ’95 a Renault – and then, as Renault F1, took Fernando Alonso to the 2005-06 titles against the might of Ferrari and Schumacher.
The team is based at Enstone in Oxfordshire, England, and this year has used Mercedes power units.
While that arrangement now ceases, Red Bull’s junior team, Italian-based Scuderia Toro Rosso, will stop using Renault power, instead renewing an association with Ferrari.
The new American team entering F1 next season, Haas, also will have Ferrari power.