Renault is planning to remain in F1. The team’s future was in doubt after the company announced a plan to layoff 15,000 jobs worldwide.
The cost-cutting is part of a three-year plan intended to save the company €2 billion, as many automotive companies struggle to cope with the impact of the COVID-19 pandemic.
Renault would have also had a good opportunity to make an exit from the sport as the current Concorde Agreement ends this year. The team is also lacking engine customers. McLaren is the only team running the Renault engine, but set to change to Mercedes power in 2021.
Clotilde Delbos, the company’s Chief Financial Officer who has been serving as interim Chief Executive Officer following the departure of Thierry Bolloré late last year, confirmed that the upcoming budget cap regulations influenced the decision.
“We have said publicly and we confirm that we remain committed to Formula 1,” she explained. “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.”
The sport will see a $145m budget cap introduced in 2021, which will be gradually reduced to $135m by 2023.
