French car maker Renault announced plans yesterday to return to Formula One under its own name next year by taking over the Lotus team, a deal that staved off the threat of administration for the cash-strapped outfit.
Renault said it had signed a letter of intent to take a controlling stake in British-based Lotus, which is facing legal action in London over unpaid taxes and risked having its fate decided by a judge had Renault not come to the rescue.
“The signature of this Letter of Intent marks Renault’s first step towards the project of a Renault Formula 1 team from the 2016 racing season, thereby extending 38 years of commitment of the brand to the world’s premier motorsport championship series,” Renault said.
Lotus was previously the Renault Formula One team, which was sold and renamed after a race-fixing scandal centred on the 2008 Singapore Grand Prix.
Under its previous guises of Benetton and Renault, the team won world championships with Michael Schumacher and Fernando Alonso. Sponsored mainly by Venezuelan state oil company PDVSA, Lotus finished fourth overall in 2013 but slumped to eighth in 2014 with just 10 points.
It has struggled to operate normally this season because of pressure from creditors and legal difficulties.
In Japan, the team were locked out of a hospitality unit intended for their use after failing to pay Grand Prix circuit organisers. Their mechanics had to be fed elsewhere as a favour and their freight was delayed because of payment problems.
After the Belgian Grand Prix, bailiffs impounded their cars in a dispute with former reserve Charles Pic that was later settled.
The London court case was brought by Britain’s tax authority, HMRC, which is owed some £2.715 million in missed income tax and national insurance payments relating to July, August and September, plus interest.
The High Court in London had given Lotus until yesterday to make a deal with Renault that could potentially satisfy creditors, or face administration.
At a hearing yesterday morning, lawyers for Renault and Lotus said a deal had been agreed overnight and they asked for an adjournment until Dec. 7 to allow time to finalise the transaction.