A few days after Renault Group announced the termination of its Formula 1 engine project at Viry-Châtillon, CEO Luca de Meo stepped forward to defend the contentious decision.
In an interview with L’Équipe, De Meo acknowledged the massive emotional impact on the French factory’s staff while stressing the financial and strategic imperatives that led to the move.
“This decision is heartbreaking,” the Italian CEO admitted, calling it a deeply personal and emotional subject. “I’m very passionate. It’s heartbreaking. This decision is the result of months and months of observations.”
Addressing the Viry-Châtillon staff, he praised their dedication and expressing confidence in their ability to take the project forward: “I admire the commitment and tenacity of the people of Viry-Châtillon. They have the guts. And that is good news."
Despite his respect for the team, De Meo underscored the necessity for change, citing concerns over the trajectory of Renault’s Formula 1 operations. “In Formula 1, we became invisible. Two more years like this, and the project would completely collapse. We have been on a downward slope for three seasons. We had to shake all that up.”
Engine building costs are between $200 to $250 million per year
De Meo highlighted the financial strain on the company, noting that the costs of producing Formula 1 power units range between $200 to $250 million per year, in addition to an operating budget of $150 million.
With Alpine struggling on the wrong end of the grid, De Meo lamented that the team was haemorrhaging money: “Given our standings in the championship, is losing bonuses. Sponsors are rare. We have a hole in our pockets. My shareholders know how to count. Alpine has to make money. With our P16 and P17, we look like jokers.”
For newly appointed Alpine F1 boss Ollie Oakes, well aware of the struggles and challenges, the focus remains clear. “For me, as the team principal, I just want to have the best engine and go racing. That's the crux."
As the dust settles on this dramatic shift in strategy, the future of Renault's involvement in Formula 1 is over, De Meo's decision signals a significant shift in the French automaker’s approach to the sport, this Alpine project their final attempt to salvage pride or destroy it. Time will tell.
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