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Renault makes decision on F1 future
16 December 2009
Renault will remain in the FIA F1 World Championship in 2010 after concluding a deal with Genii Capital, a Luxemburg-based investment firm specialised in new technologies, brand management and motorsport.
Under the arrangement both partners will operate the team together and as a result the outfit will retain its name and its identity next season, along with the core ingredients that led to the successes achieved in 2005 and 2006.
The letter of intent signed by the two companies today should be concluded in early 2010 and it will lead to Genii Capital acquiring a large stake in Renault's F1 operational base at Enstone in the United Kingdom.
"I am delighted to welcome Genii Capital as our new strategic partner as I am sure that their enthusiasm and business expertise will create a new dynamic for the team, the staff, and our partners," said Bernard Rey, Renault F1 team president.
"Altogether, we look forward to competing again at the highest level in F1. With the ongoing evolutions of the F1 regulations, Renault will be able to entertain its fans, while promoting a leaner and sounder Championship.
"We will also show Renault's skill when it comes to developing high-performance, fuel-efficient cars."
"We are delighted to have been selected as Renault's strategic partner for the Renault F1 Team," added Eric Lux, CEO of Genii Capital. "Our long-term vision for this challenging venture aims to return Renault to the forefront of F1.
"Together with Renault, we intend to run the team with the same values as any of our other investments, prioritising ambitious performance targets without neglecting cost efficiency.
"We strongly believe that on-track performance can be compatible with business performance, and we will use all our entrepreneurial spirit and commercial know-how to achieve this goal."
Renault also confirmed that the team will continue to be supplied with engines by its sister company in Viry-Châtillon, which is also pleased to have received a renewed commitment from Red Bull Racing for the 2010 season.
Meanwhile, Genii Capital now wants to explore opportunities for synergies between the companies in its investment portfolio and the Renault F1 Team.
One example is Gravity Sport Management, a career management company for young drivers that will leverage the experience of the Renault Driver Development programme. Furthermore, Genii Capital hopes to play an active role in the overall strategic development of F1 through its knowledge of, and access to, new technologies.
"This is a period of opportunity for F1, not a period of uncertainty," summed-up Gerard Lopez, managing partner at Mangrove Capital Partners and board member of Genii Capital. "F1 has an extraordinary level of global awareness that can be used to develop new business-to-business opportunities in traditional and developing markets, and there are some very exciting new revenue streams to be explored."
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