Renault looks to acquire majority stake in Sahara Force India

Aditya · 25th August 2015, 15:17

Earlier this year, we had reported that the Sahara Force India Formula 1 team was up for sale and Renault was interested in purchasing it (click here to read report). Now, according to media reports, the French auto major has been in talks with Vijay Mallya, the team principal of Sahara Force India Formula 1 team, to discuss the possibility of acquiring a majority stake in the team.

Renault looks to acquire majority stake in Sahara Force India-fi.jpg

At present, Renault supplies engines to Red Bull and Toro Rosso. However, its contract with the two teams will expire at the end of the next season. The company is evaluating the possibility of returning as a constructor. Other teams such as Lotus are also being considered for a takeover.

Sahara Force India's shareholding is split between Vijay Mallya, the Sahara group and the Mol family. Mallya, who has the mandate to speak for all three parties, is awaiting a deal from Renault. A decision will be taken only after discussing it with the board.

Source: Autosport

MadiMaama · 25th August 2015, 20:08

I believe this is great news for FI, of course, we may not see that name next year but it is great news to see a manufacturer in F1. i don't think it'll create bad publicity for Renault. It may boost their sales and who knows, VJM could get some cash to pay his debts off

Hatari · 25th August 2015, 20:18

Feel this is Renault just getting an idea on valuations and how low other teams are willing to go. Old trick to talk to 2-3 other teams apart from the one you intend to buy.

rejoycjohn · 25th August 2015, 20:52

Quote:

Originally Posted by Aditya

Earlier this year, we had reported that the Sahara Force India Formula 1 team was up for sale and Renault was interested in purchasing it (click here to read report). Now, according to media reports, the French auto major has been in talks with Vijay Mallya, the team principal of Sahara Force India Formula 1 team, to discuss the possibility of acquiring a majority stake in the team.

Attachment 1407225

At present, Renault supplies engines to Red Bull and Toro Rosso. However, its contract with the two teams will expire at the end of the next season. The company is evaluating the possibility of returning as a constructor. Other teams such as Lotus are also being considered for a takeover.

Source: Autosport

I guess there is a bit more to Renault's interest in Force India team. Currently the relationship between Renault and Redbull is not that great. The team is complaining about the Renault engine that they are having now and according to redbull Renault is not up to the expected level when it comes to engine performance.

This would mean that mostly Renault would lose the contract with the current Redbull team, and they would like to get their name on the Force India car.

We all know that Vijay mallya is not really at his best financial situation at the moment, so he would definitely like to share the burden with another company. But I am not sure if its a good deal for Force India as a F1 team. It's current engine is a Mercedes engine and one of the best in terms of performance
Recently the performance of Force India has been good in both qualifying and in the race, and it has a lot to do with the current engine. So the team might be losing quite a bit by accepting the deal and the Renault engine.

deetjohn · 26th August 2015, 08:45

This is good news.

Renault has three options in front of them after the very successful partnership with Red Bull went sour as the team as a whole was not able to cope with the regulation changes. Renault and Red Bull been in open war since then.

So, the options are:
1) Supply engines to another team, which looks less probable as their PU needs extensive development.
2) Return as a factory outfit like the good old Renault team. The easiest way to do this is buying a good mid tier team and pump in money and development, which is what they are planning to do with Force India.
3) Or quit F1 altogether.

I think the second option is the best for them at the moment and F1 in general.

Force India has a very good team, a very decent car and a good driver line up when you take their severe lack of funding into account. And they do have good results from time to time. But the lack of funding is so severe that they even struggle to pay their biggest suppliers. They even missed a few tests in the beginning of the season due to monetary reasons. So, Renault will bring the much needed cash.

The biggest worry will be that, Force India will have to let go off their all conquering Mercedes PU, the best in business currently.

And we as a country will lose an F1 team as Force India currently runs an Indian licence. Technically an Indian team even though the team is based out of UK. A takeover by Renault will make them a French team.

25th August 2015, 15:17	#1
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,801 Thanked: 76,766 Times View My Garage	Renault looks to acquire majority stake in Sahara Force India Earlier this year, we had reported that the Sahara Force India Formula 1 team was up for sale and Renault was interested in purchasing it (click here to read report). Now, according to media reports, the French auto major has been in talks with Vijay Mallya, the team principal of Sahara Force India Formula 1 team, to discuss the possibility of acquiring a majority stake in the team. At present, Renault supplies engines to Red Bull and Toro Rosso. However, its contract with the two teams will expire at the end of the next season. The company is evaluating the possibility of returning as a constructor. Other teams such as Lotus are also being considered for a takeover. Sahara Force India's shareholding is split between Vijay Mallya, the Sahara group and the Mol family. Mallya, who has the mandate to speak for all three parties, is awaiting a deal from Renault. A decision will be taken only after discussing it with the board. Source: Autosport
	(8) Thanks

25th August 2015, 20:08	#2
MadiMaama BHPian Join Date: Jan 2015 Location: By the tracks Posts: 138 Thanked: 409 Times	Re: Renault looks to acquire majority stake in Sahara Force India I believe this is great news for FI, of course, we may not see that name next year but it is great news to see a manufacturer in F1. i don't think it'll create bad publicity for Renault. It may boost their sales and who knows, VJM could get some cash to pay his debts off Last edited by GTO : 26th August 2015 at 12:08. Reason: Quoted post deleted
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25th August 2015, 20:18	#3
Hatari Senior - BHPian Join Date: Feb 2004 Location: Calcutta Posts: 1,872 Thanked: 874 Times	Re: Renault looks to acquire majority stake in Sahara Force India Feel this is Renault just getting an idea on valuations and how low other teams are willing to go. Old trick to talk to 2-3 other teams apart from the one you intend to buy.
	(1) Thanks

26th August 2015, 08:45	#5
deetjohn Senior - BHPian Join Date: Sep 2006 Location: Kochi Posts: 4,530 Thanked: 10,581 Times View My Garage	Re: Renault looks to acquire majority stake in Sahara Force India This is good news. Renault has three options in front of them after the very successful partnership with Red Bull went sour as the team as a whole was not able to cope with the regulation changes. Renault and Red Bull been in open war since then. So, the options are: 1) Supply engines to another team, which looks less probable as their PU needs extensive development. 2) Return as a factory outfit like the good old Renault team. The easiest way to do this is buying a good mid tier team and pump in money and development, which is what they are planning to do with Force India. 3) Or quit F1 altogether. I think the second option is the best for them at the moment and F1 in general. Force India has a very good team, a very decent car and a good driver line up when you take their severe lack of funding into account. And they do have good results from time to time. But the lack of funding is so severe that they even struggle to pay their biggest suppliers. They even missed a few tests in the beginning of the season due to monetary reasons. So, Renault will bring the much needed cash. The biggest worry will be that, Force India will have to let go off their all conquering Mercedes PU, the best in business currently. And we as a country will lose an F1 team as Force India currently runs an Indian licence. Technically an Indian team even though the team is based out of UK. A takeover by Renault will make them a French team.
	(1) Thanks