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Updated May 30th, 2020 at 06:43 IST

Reanult not leaving Formula One, CEO says team 'here to stay'

Renault's parent company recently announced as many as 15,000 job cuts worldwide as part of a 2 billion-euro cost-cutting plan over three years.

Reported by: Digital Desk
Renault
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Renault acting Chief Executive Officer Clotilde Delbos, on Friday, stated in an online presentation that they will stay in the sport and are not planning to exit. Delbos also added that the new change in the rules approved by the FIA and Formula One will be beneficial for the team.

READ: FIA Approves New Set Of Rules For Formula One; Budget Cap And New Sliding Scale Included

'Renault here to stay'

Delbos was quoted by the Formula One website as saying, "We have said publicly, and we confirm, that we intend to stay in Formula 1. Actually the news about new regulations, a new cap in terms of investment, is very good for us because we had less investment in this area than some of our competitors, who were spending a lot of money. So F1, we’re here and we’ll stay.”

Renault's parent company recently announced as many as 15,000 job cuts worldwide as part of a 2 billion-euro cost-cutting plan over three years. Renault said on Friday that nearly 4,600 jobs will be cut in France in addition to more than 10,000 in the rest of the world.

Jean-Dominique Senard, chairman of the board of directors of Renault, said, “the planned changes are fundamental to ensure the sustainability of the company and its development over the long term.” The group, which employs 180,000 workers worldwide, announced the suspension of planned capacity increase projects in Morocco and Romania.

READ: F1 Demands Quarantine Exemptions For Elite Sport

Earlier this week, the World Motor Sport Council announced a set of guidelines which include a new price cap and provisions to hold closed-door events. A cost cap had been agreed by the teams and the sport's governing body, but due to the financial strain on the teams and sport due to coronavirus, the cap for 2021 will be lowered from the original figure of $175 million per year to $145 million, with further reductions in the following years. "The aim is to deliver a more competitive championship that features a more level playing field, while ensuring the drive for creating unique and boundary-breaking technology and engineering remains," F1 says.

The aim is to cut costs and level the playing field. “Will it level the playing field over the course of a season? Probably not. But over the course of a few seasons, it’s very unlikely you will not see a closing of the grid," said F1 Head of Aerodynamics Jason Somerville, who has been part of the team shaping the new Technical Regulations.

READ: Singapore F1 Can't Be Held Behind Closed Doors: Organisers

 After the announcement, Renault had released a statement, which read that the team "welcomes the adoption of the new regulations by the FIA World Motor Sport Council, which constitute responsible and appropriate responses to the short and long term challenges of Formula 1. These decisions, supported unanimously by teams with very differing strategies, honour the remarkable work of the FIA and Formula 1 and will strengthen the discipline in the long term."

READ: Carlos Sainz Excited To Leave McLaren For Ferrari In 2020-21 F1 Season

(With agency inputs)

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Published May 30th, 2020 at 06:43 IST

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