Renault On Their Way Out of Formula1

Carlos Ghosn dropped a hint, or did he? Today he actually questioned the purpose of having Formula1 and the purpose of having manufacturers participate in Formula1.

He brought to light the environmental concerns of the sport – while teams on one end are attempting to produce ‘green’ cars, on the other they are blowing up gallons of fuels and lubricants racing around the globe and in turn increasing their carbon footprints globally. He also posed an interesting question – is the advanced technology used in the racing world directed towards creating ‘greener’ cars?

While he did express shock of F1 having lost 3 world class manufacturers in less than a year – he also hinted at there were a lot of unanswered questions in Formula1. Costs aside, what is Formula1 trying to prove? Is it only about entertainment – or is about manufacturers trying to prove their might by producing the best racing cars? If so, at what cost? And when does the vicious cycle stop?

I think F1 at large needs to set objectives for each stakeholder – while entertainment is the key reason for existence – it still needs to address various issues that the teams have. Constantly changing regulations and the expensive cost of operations are two of the primary reasons for manufacturers to call quits on their F1 programs.

Yes, F1 is a massive marketing platform that appeals to a global audience, but manufacturers certainly are seeking much beyond that. If an F1 program is solely to win races without much adaptation to their road car programs, reasons for manufacturers to exist might just cease! Will we see yet another manufacturer exit? Are Renault on their way out too?

Lets not even open the 'Spy Gate' scandal and their 'suspended sentence' - Renault do seem to be headed towards the exit...