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Renault allayed fears on Wednesday that it would be the latest big name manufacturer quitting the sport, after selling a huge 75% stake in their operations to Luxemburg based Genii Capital. The team believes that the new inflow of funds will not only secured its future in Formula 1, a sport it has played an active role in for 35 years, but also make it a lot more competitive in the seasons ahead.

In a release issued by Renault, the French manufacturer said it will retain its name, its identity and the core ingredients that led to the successes achieved in 2005 and 2006. The team will also continue to be supplied with engines by its sister company in Viry-Châtillon, which incidentally will also service the Red Bull Racing team in 2010. Renault believes that a presence in Formula 1 is crucial for its long term ambitions and is key to its brand awareness worldwide, particularly in new, emerging markets.

Bernard Rey, Renault F1 Team President, added: "I am delighted to welcome Genii Capital as our new strategic partner as I am sure that their enthusiasm and business expertise will create a new dynamic for the team, the staff, and our partners. Altogether, we look forward to competing again at the highest level in Formula One. Today's announcement also confirms Renault's commitment and trust in the sport's governing bodies to improve the green credentials of Formula One.

"With the ongoing evolutions of the Formula One regulations, Renault will be able to entertain its fans, while promoting a leaner and sounder Championship. We will show Renault's skill when it comes to developing high-performance, fuel-efficient cars"

That optimism is yet to percolate to the rest of the team, with the manager of newly signed driver Robert Kubica expressing concern about the new management. Though news that technical director Bob Bell will stay on is likely to have a positive impact. What Renault desperately need is a new Team Principal to fill the post left vacant by Flavio Briatore following the now infamous Singapore-scandal, a chapter in Renault's history they would quite like to forget.

Genii Capital CEO, Eric Lux, meanwhile was expectedly thrilled with his new purchase. He said in a statement on Wednesday, "We are delighted to have been selected as Renault's strategic partner for the Renault F1 Team. Our long-term vision for this challenging venture aims to return Renault to the forefront of Formula 1. Together with Renault, we intend to run the team with the same values as any of our other investments, prioritising ambitious performance targets without neglecting cost efficiency. We strongly believe that on-track performance can be compatible with business performance, and we will use all our entrepreneurial spirit and commercial know-how to achieve this goal."

Genii Capital aims to work in close strategic partnership with Renault to give the team the stability and the resources it needs to succeed in the years ahead. Genii will also explore opportunities for synergies between companies in its investment portfolio and the Renault F1 Team. One example is Gravity Sport Management, a career management company for young drivers that will leverage the experience of the Renault Driver Development programme.

"This is a period of opportunity for Formula 1, not a period of uncertainty," commented Gerard Lopez, managing partner at Mangrove Capital Partners and board member of Genii Capital. "Formula 1 has an extraordinary level of global awareness that can be used to develop new business-to-business opportunities in traditional and developing markets, and there are exciting new revenue streams to be explored."

File Photograph Copyright: MorganaF1