From press releases from Renault and Genii

Renault has decided to maintain its commitment to Formula 1 and welcomes the perspective of a strategic partnership with Genii Capital, a Luxemburg based firm specialized in new technologies, brand management and motor sport.

On December 2nd, Auto123.com investigated the possibility of seeing Genii Capital purchase the Renault team following a post on British journalist Will Buxton’s blog.

Following the proposed sale of a large stake of Renault F1 Team to Genii, both partners will operate the team together. The letter of intent signed by the two companies should be concluded in early 2010.

In 2010, the team will retain its name, its identity and the core ingredients.

The agreement between Genii Capital and Renault concerns the team’s facilities at Enstone, UK the site that includes state-of-the-art aerodynamic facilities, such as the recent Computational Fluid Dynamics centre.

The team will continue to be supplied with engines by its sister company based in Viry-Châtillon, near Paris in France.

After 35 years in the sport, Renault announced a new phase for its F1 programme, consistent with Formula One's drive for cost efficiencies.

The important cost reduction measures, made possible by the collective work within FOTA, have already improved significantly the operating cost base. With the anticipated sale of a stake in its F1 operational base to Genii Capital, Renault achieves today another step that will definitely bring F1 participation to an affordable level for the Group.

In addition, the new partnership will contribute to procuring the team the resources to compete sustainably at the highest level, and creates a great opportunity to modernise its governance.

Genii Capital will also explore opportunities for synergies between 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 Formula 1 through its knowledge of, and access to, new technologies.





Photo Credit : Renault