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Renault Group chief executive Luca de Meo has claimed the Alpine Formula One project would have collapsed if the French car giant hadn’t taken the decision to terminate its engine programme.
De Meo was speaking with L’Equipe after Renault announced it will end its Formula One engine programme after the 2025 season, meaning it will have to buy power units from another manufacturer.
He revealed the company was “losing €40 million [US$43.9 million] per day” when he took over in July 2020, and noted that the production costs of Formula One power units range “between 200 and 250 million per year”, forcing Renault to take steps to address its financial situation.
“We’ve been in a downward spiral for three seasons now,” he continued. “Two more years like this, and the project would completely collapse. We had to do something to make a change.”
Recent performances have not reflected the level of investment that Renault Group is currently undertaking, with the team currently ninth out of ten teams in the constructors’ standings.
“We are losing bonuses and sponsors because of our standings,” de Meo added. “We look ridiculous with 16th and 17th places. We are nowhere.“
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Engines have been designed and produced at the French base since the team entered Formula One for the 1977 season.
The transition will see Viry-Chatillon fall under the ‘Hypertech Alpine’ plan, which seeks to create a centre of engineering excellence.
Hypertech Alpine will focus on the development of the Alpine supercar, future battery technologies, and new electric motor technologies.
Viry-Chatillon will continue its involvement in motorsport through its existing entries in the World Endurance Championship (WEC) and the World Rally-Raid Championship (W2RC).
“We needed to rethink the project to finally win,” de Meo concluded. “I am a manager of a listed company, and I have to make decisions that are best for the business.”
Renault’s decision to abandon its engine programme is expected to result in Mercedes being confirmed as the team’s new engine supplier imminently, with Alpine looking to target the 2026 regulation change for a return to competitiveness.
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