Renault 2020 livery presentation, Melbourne, 2020

F1 budget cap talks delayed as Renault puts staff on furlough

2020 F1 season

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A meeting to discuss a potential reduction in the Formula 1 budget cap which was due to take place today has been delayed.

RaceFans understands a reduction in the annual cost cap from $175 million to $125 million was due to be discussed, along with a proposal from Ferrari to introduce a two-tier cap with a lower level for non-manufacturer teams.

The meeting is expected to take place next week following the submission of more detailed proposals from several teams which the FIA wished to examine in close detail.

In the meantime Renault has become the fourth UK-based Formula 1 team to announce it is placing its staff on temporary leave during the hiatus. It will take advantage of the Job Retention Scheme offered by the British government.

Its engine operation in Viry-Chatillon, France has implemented a part-time work schedule effective from the beginning of this week. Both sites are also observing the extended mandatory shutdown for F1 operations.

“The very difficult human and sanitary circumstances that we are experiencing and the strict lockdown in France and England, as well as in most of the grand prix-organising countries, do not yet allow us to measure the impact on our sport,” said Renault Sport Racing managing director Cyril Abiteboul.

“We therefore must use all the measures at our disposal to get through this prolonged period of uncertainty and inactivity as best as we can, while protecting the whole team we have built over the past four years.”

This article will be updated.

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Author information

Dieter Rencken
Dieter Rencken has held full FIA Formula 1 media accreditation since 2000, during which period he has reported from over 300 grands prix, plus...
Keith Collantine
Lifelong motor sport fan Keith set up RaceFans in 2005 - when it was originally called F1 Fanatic. Having previously worked as a motoring...

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  • 4 comments on “F1 budget cap talks delayed as Renault puts staff on furlough”

    1. Is there any reason every team in the UK not to furlough their staff for now? From what I understand the government is picking up 80% of their salary while they’re furloughed and they can’t do anything now anyways so why not save the money and let the government pick up the tab?

      1. Well, it’s only 80% up to £2,500 per month, so may well be a lot less than 80% for many F1 employees.

        Plus, several teams are involved with reverse engineering ventilators, so those staff can’t be furloughed or they’re not allowed to perform any work for the employer at all

    2. Headline had me going for a moment until the article cleared it up that these were two separate happenings, and there’s no cause/effect relationship.

    3. The meeting is expected to take place next week following the submission of more detailed proposals from several teams which the FIA wished to examine in close detail.

      It will be interesting to hear what some of these proposals are.

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