Earlier this week, I wrote about staff cuts at McLaren Racing. On Friday, Williams and Renault made announcements, each with a different storyline.
Courtesy: FAVPNG.com
Williams’ company revenue slid to $117 million last year. In response, the team decided to terminate its title-sponsorship with Rokit immediately. It also put several other financial options on the table, including raising new capital, divesting a minority stake or majority stake in Williams Grand Prix Holdings, and selling the company.
In a statement, WGPH wrote: “Whilst no decisions have been made regarding the optimal outcome yet, to facilitate discussions with interested parties, the company announces the commencement of a ‘formal sale process.’ At the time of this announcement, (we are) in preliminary discussions with a small number of parties regarding a potential investment in the company.”
While some analysts thought Renault might have something similar to say, the company announced on Friday that it would continue in the sport.
Courtesy: Carscoops.com
Renault Interim CEO Clotilde Delbos presented a plan that cut 15,000 jobs worldwide (4500 in France). Included in the plan is the need to secure $2.2 billion in cost-savings over the next three years.
But those financial decisions won’t mean the end of its F1 team. “We confirm that we intend to stay in Formula One,” Delbos said in a conference call. A key in being able to make that decision was the new financial cap imposed by F.I.A. on Formula 1 teams beginning in 2021. “We have less invested than some of our competitors who are spending a lot of money, so F1, we are here, and we shall stay in Formula One,” she said.
One advantage for Renault is that–just like Mercedes and Ferrari–it runs on engines it manufacturers. Teams like McLaren and Williams, on the other hand, need engines from other companies. How the new budget caps will work for those teams is yet to be understood.
