F1 News: Renault remains committed to F1 despite exit rumours

Like other manufacturers the French company has been hit hard by the coronavirus pandemic, and it has announced that it will be cutting 15,000 jobs worldwide as part of an effort to save €2bn over the next three years.

The fallout of the departure of Carlos Ghosn, followed by the ousting of his successor Thierry Bollore, created extra turmoil within the organisation.

That put a focus on the F1 team, which along with the rest of the company has been subject to a review over recent months.

The timing of the end of the current Concorde Agreement this year gave Renault the opportunity to reconsider its future, while the lack of any engine customers for 2021 also made it potentially easier for a withdrawal decision to be made.

However the change to the post-2021 cost cap, formally confirmed by the FIA this week, has allowed all team owners and investors to get a much clearer idea of what they are likely to have to spend in future years, with the budget initially restricted to $145m on 2021 and then dropping to $135m by 2023.

Clotilde Delbos, Renault's financial boss and currently acting chief executive, has made it clear that the changes are crucial to the company's decision.

"We have said publicly and we confirm that we remain committed to Formula 1," she said in a phone call with analysts today.

"The announcement of new regulations on spending limits is very good for us because we will have to invest less in this discipline than some of our competitors who spend a lot of money."

Renault will enter 2021 with a change in its driver line-up, after Daniel Ricciardo signed a deal with McLaren for next season.

In an exclusive interview with Autosport last week, Renault F1 boss Cyril Abiteboul had suggested that the team was looking to stay within F1.

"We've been in Formula 1 since the '70s, we've been loyal to Formula 1, and clearly as we look forward I think it's important to stay true to your roots," Abiteboul said.

"Motorsport has a unique value and contribution into it. That's why we believe in it, just like we believe in a number of marketing activities, except that it's sport, except that it's been a core of technology.

"That's racing, that's emotion also, and Renault stands for emotion. So all of that means a lot. And that's why we've been in this for a decade and we intend to do so for very long."