Nice New Renaults

The current financial meltdown has been tough for practically every niche of the economy, but car companies have been particularly slammed. Renault is the latest company in the news and questions are being raised about its Formula One effort.

Renault is a French car company that is the equivalent of GM in the United States. Unfortunately, its current economic condition is about the same as well. The company just reported over a billion dollars in losses for the last half of 2008. Renault’s market is much smaller than most car companies, so these are devastating numbers.

Things are so bad for Renault and other French car companies that the French government has had to step in to help. It is providing the company a 3 billion Euro loan. It is also providing the financing arm of Renault with another billion to try to make ends meet while the current contraction takes place.

Given the current financial situation for Renault, rumors abound regarding whether the company will continue to fund its Formula One team. Renault has always been a bit ambivalent about its investment. One needs only look back to when Fernando Alonso left the team for McLaren Mercedes. The primary reason was it was unclear how committed Renault was to continuing the team. With money tight, a pull out may be inevitable.

Will we see Renault continue to field a team in Formula One? The clear answer is yes for the start of the 2009 season. If the economic hurricane sweeping the globe does not stop, it is hard to see the company continuing the team through the full season. If nothing else, taking billion dollar loans from the government is going to make it difficult to do so with taxpayers not particularly interested in going racing!

Renault is not the only team facing financial issues. Even with the cutbacks in budgets, it is important to realize many of the teams are like ducks. They look calm above the water line, but their feet are thrashing about below it. Mercedes and BMW are heavily reliant upon the US market for revenues.. If sales nose dive [and they are], one could see those teams in trouble. Toyota certainly has to be looking at its team. Has any company spent so much money for so few results?

The 2009 Formula One season is shaping up to be incredibly interesting. How will the new cars perform? Who will win the championships? Who will be left standing at the end of the season – literally.

Lemmy Gibson

The two-times Formula 1 World Champion, the Spaniard Fernando Alonso and the Brazilian Nelsinho Piquet will be the two official Renault drivers for the 2008 season; replacing the Italian Giancarlo Fisichella and the Finnish Heikki Kovalainen; this has already been announced to the AFP in Spain. Renault’s spokesman did not refer to the contracts duration or gave any details that could compromise them.

In an interview with the French motor-racing official web page, Alonso stated ”I’m very happy by signing with Renault. Everyone knows is a great team and what they have achieved in the Formula One. In the 2005 and 2006 seasons the team won the world championship and I would like to be part of that success”.

For a long time now, it has been announced on the Spaniard’s web page his return to Renault assuring his comeback ”to his origins”.

Alonso affirmed Renault is a team ”that knows what it takes to win.” He also stated that ”the decision to elect a team did not take more than one week; my people as well as myself know what we wanted”.

A few weeks ago, Alonso, 26-year-old abandoned the McLaren-Mercedes team after one season marked by the constant troubles with the head leaders, besides the Ferrari’s espionage case and the worst of all the very obvious rivalry with his team-mate, the British Lewis Hamilton.

Alonso, a two-time world champion (2005 and 2006) returns to the team with which he lived his Formula One best seasons. He makes his final decision once the FIA decided not to sanction Renault due to a non-clear espionage case involving the McLaren team.

Alonso did not give an extend declaration about the issue in question. “I am one of the 22 privileged ones that can drive a single-seater each year and I’m still even more fortunate to be able to abandon a great team and enter another one. Many drivers have never been able to run in the highest category”.

Alonso will drive next to Nelsinho Piquet, son of the three-time World Champion Nélson Piquet (1981, 1983, 1987), who was Renault’s tester pilot last season. Renault’s test driver position will be occupied by the French driver Romain Grosjean, Formula 3 Euroseries 2007 Champion.

Piquet made a written statement on his web page ”A fantastic opportunity to debut in Formula 1 was offered to me by one of the best motor-racing teams as well as next to one of the best drivers. It is something for which I have worked a lot and I’m proud that my hard work has been noticed allowing me to achieve this position”.

Next January 31st; Renault will officially present the R28 single-seater in Paris with which will run for the 2008 F1 Championship season.