Renault confirms return to Formula One after the purchase of Team Lotus has been finalised.

• Carlos Ghosn announces his decision that Renault will return to Formula 1 with its own team for 2016 season.
• Renault, 12-time Constructor’s Champion with nearly 40 years in the sport, is an iconic brand in Formula 1 and intends to play an active role in the sport’s development.
• F1 is a technology showcase and accelerates development of the Renault’s innovation and range of sports cars.

Following the September announcement of the signing of a Letter of Intent with Lotus, teams at Renault continued to evaluate the possibility of a return to Formula 1. Particular attention was paid to competing successfully with its own team in a financially sound way starting in 2016.

“Renault had two options: to come back at 100 percent or leave. After a detailed study, I have decided that Renault will be in Formula 1, starting 2016. The final details supplied by F1’s main stakeholders gave us the confidence to accept this new challenge. Our ambition is to win--even if it will take some time,” said Carlos Ghosn, Chairman and CEO, Renault.

As a full team, Renault will take maximum benefit from its victories. The payback as an engine supplier proved to be limited. The return on the investment necessitated by the new engine regulations and the return in terms of image were low. 

Work continues on finalizing the terms of the acquisition of the Lotus F1 team in the shortest timeframe possible. The principal contracts were signed on December 3, 2015. The Lotus F1 Team effectively stands out as the best partner. Renault and Lotus F1 have known each other for 15 years and were world champions together in 2005 and 2006.

Renault has had uninterrupted involvement in Formula 1 for almost 40 years. In 1977, it revolutionised the championship with the introduction of turbocharging, a technique that soon became the norm in the sport. Renault has since taken part in more than 600 grand prix, claiming 168 race wins, 12 Constructors’ titles and 11 Drivers’ crowns.

Renault’s decision to continue its involvement in Formula 1 is confirmation that it sees motorsport as an essential part of the brand’s identity. Formula 1 is the ultimate symbol of the passion for automobiles. Passion is defines Renault as expressed by its brand signature, ‘Passion for Life’. 

In addition to attracting many customers, Formula 1 also fuels employee motivation. As the pinnacle of motor sports, Formula 1 demands technological and operational excellence. The championship serves as a showcase for the technological expertise that Renault dials into its products for the benefit of its customers.

Formula 1 is a means for Renault to accelerate development and remain at the forefront of the sport’s technological progress. It simultaneously allows Renault to build bridges between the advanced technologies seen in the world championship and its road cars, particularly in the fields of electric and hybrid vehicles. Consistent with its commitment to F1, 

Renault will develop its R.S. range by stepping up investment in order to be active on every continent and in even more segments with vehicles that meet the needs of their different markets.

Formula 1 serves to promote awareness of the Renault brand and its image in all its markets across the world. Formula 1 is one of the sports that enjoys the most media coverage worldwide thanks to a following on five continents, particulary in emerging markets. It attracts 450 million television viewers annually and Its scope for growth is enormous thanks to opportunities founded on new technologies, social networks, video games, etc. that have yet to be fully exploited.

In January, we will provide more detailed information about Renault’s F1 programme ahead of the 2016 championship that begins next March

Jaguar Land Rover signs letter of Intent to investigate the possibility of building a new plant in Western Slovakia.

• Letter of Intent signed for potential new plant in the Slovak Republic
• Indicates the next stage of the Company’s expansion plans to support a competitive global business in the future
• Jaguar Land Rover’s global expansion underpins long-term investment in new vehicles and technologies in the UK

Jaguar Land Rover has signed a Letter of Intent with the Government of the Slovak Republic for the potential development of a new manufacturing plant in the city of Nitra in western Slovakia. With its established premium automotive industry, Slovakia is an attractive possible development opportunity.

The move marks the next step in the Company’s strategy to become a more competitive global business by expanding its manufacturing operations into new international locations in the future.

The UK is the cornerstone of Jaguar Land Rover’s business. It remains at the centre of Jaguar Land Rover’s design, engineering and manufacturing capabilities. Over the past five years, Jaguar Land Rover has employed more than 20,000 people taking its workforce to more than 36,000 and invested more than £11 billion in new product creation and capital expenditure.

During this time, the Company has invested heavily in its UK vehicle manufacturing facilities at Castle Bromwich, Halewood and Solihull to support the introduction all-new vehicles such as the Jaguar XE, Jaguar F-PACE, Range Rover Evoque and Land Rover Discovery Sport. Jaguar Land Rover has also invested more than £500 million in a new Engine Manufacturing Centre in the UK, creating 1,400 new jobs in the Midlands. 

In addition, it plans to expand its advanced engineering and design centre at Whitley, Coventry and invest in the National Automotive Innovation Centre at the University of Warwick. Jaguar Land Rover’s sustained investment supports the delivery of the UK’s wider industrial strategy.

Dr Ralf Speth, Chief Executive Officer, Jaguar Land Rover, said, “The expansion of our business globally is essential to support its long-term, resilient growth. As well as creating additional capacity, it allows us to invest in the development of more new vehicles and technologies, which supports jobs in the UK.

“With its established premium automotive industry, Slovakia is an attractive potential development opportunity for us. The new factory will complement our existing facilities in the UK, China, India and the one under construction in Brazil.”

The feasibility study underway with the Slovakian Government will explore plans for a factory with an installed capacity of up to 300,000 vehicles over the next decade. As part of Jaguar Land Rover’s commitment to deliver more lightweight vehicles, the plant would manufacture a range of aluminium Jaguar Land Rover vehicles. It is anticipated that the first cars will come off the production line in 2018.

Following robust analysis of a number of locations including Europe, the United States and Mexico, Jaguar Land Rover has selected Slovakia as its preferred location. It is close to a strong supply chain and good logistics infrastructure. Subject to the outcome of the feasibility study, a final decision is expected later this year.

Robert Fico, Prime Minister of Slovakia said, “The Slovakian Government is delighted to be selected as Jaguar Land Rover’s preferred location for this feasibility study.

We are committed to developing Slovakia’s premium automotive industry and, should we be successful, this investment would represent a significant step forward in achieving this. It would provide a boost to our country’s wider industrial strategy as well as benefitting the European Union as a whole.

We look forward to working closely with Jaguar Land Rover over the coming months to progress the negotiations.”

Jaguar Land Rover has made significant progress in building its international manufacturing presence over the last year. It opened a new joint venture in China and commenced construction of its local manufacturing plant in Brazil at the end of 2014. 

The creation of new international plants allows Jaguar Land Rover to increase its presence in regions that have been identified as having growth potential, protect against currency fluctuations and achieve a more efficient, globally competitive business.

A FEW JLR NUMBERS

• In 2015/16 Jaguar Land Rover will spend £3.5 billion on new vehicle creation and capital expenditure. In the same period, the company will launch 12 new and refreshed vehicles from its UK plants, such as the Jaguar F-PACE at Solihull.
• Jaguar Land Rover has three vehicle manufacturing facilities and a new Engine Manufacturing Centre in the UK:
  • Castle Bromwich is home to the Jaguar XF, Jaguar XJ and Jaguar F-TYPE, employing 3,500 people.
  • Halewood is home to the Range Rover Evoque and Land Rover Discovery Sport, employing 4,500 people.
  • Solihull is home to the Range Rover, Range Rover Sport, Land Rover Discovery, Land Rover Defender and the Jaguar XE, employing 9,000 people.
  • The Engine Manufacturing Centre is home to the ‘Ingenium’ engine family, starting with the 2.0 litre diesel in the Jaguar XE. It will employ 1,400 people.
• Jaguar Land Rover has two overseas manufacturing facilities and a local assembly presence in India:
  • Chery Jaguar Land Rover, its joint venture in China, produces the Range Rover Evoque and the Discovery Sport. It employs more than 2,500 people.
  • Brazil will be the company’s first wholly owned overseas manufacturing plant. It will be operational in early 2016 and will produce the Discovery Sport. It will employ circa 400 people.
  • Jaguar Land Rover has had a local assembly presence in India since 2011 and currently assembles the Range Rover Evoque, Jaguar XF and XJ. 
• Jaguar Land Rover has signed a contract manufacturing agreement with Magna Steyr in Austria.
• In 2014, Jaguar Land Rover sold 462,678 vehicles, up 9%. Of that, Jaguar sold 81,570 vehicles and Land Rover sold 381,108 vehicles.
• In the first quarter 2015/16, it sold almost 30,000 vehicles in Europe, an increase of 28%.
• Jaguar Land Rover plans 50 product actions over the next five years.
• Jaguar Land Rover is one of the UK’s largest exporters and generates over 80% of its revenue from exports.

Group Lotus, Proton and Goldstar sign letter of intent to expand into China.

PROTON Holdings Berhad (“PROTON”) the ultimate holding company of Lotus Group, announced that it has signed a Joint Venture (“JV”) Agreement with Lotus Group International Limited, United Kingdom (“Lotus Group”) and Goldstar Heavy Industrial Co. Ltd. (“Goldstar”) for a possible business expansion of Lotus cars in the People's Republic of China.

The collaboration seeks to accelerate the development of Lotus cars in the premium sports segment in China, leveraging on the incentives offered by the Fujian Provincial Government. Both PROTON and Lotus Group are subsidiaries of DRB-HICOM Berhad.

Signing on behalf of PROTON was the Honourable Tun Dr Mahathir Mohamad, Chairman of PROTON and former Prime Minister of Malaysia and witnessed by Dato’ Abdul Harith Abdullah, Chief Executive Officer of PROTON. 

Signing on behalf of Lotus Group International Limited, United Kingdom was Jean-Marc Gales, Chief Executive Officer and witnessed by Mr Rohime Shafie, Director of Lotus Group and Chief Financial Officer of PROTON; and signing on behalf of Goldstar was Mr Zheng Qianghui, Chairman of Goldstar and witnessed by Mr Zhai Wenliang, President of Goldstar.

Dato’ Abdul Harith Abdullah said “The JV Agreement will see the establishment of a new JV Company for the purpose of undertaking research and development (R&D) activities in the use of efficient and advanced technology. 

The JV Company will then produce and sell Lotus branded passenger cars as well as provide after sales services in connection with its products in the People’s Republic of China.

“The automotive market in China is the single largest in the world today, and is still growing, therefore it is only natural for an established iconic company like Lotus to embark upon the possibility of expansion, venture into the market and seek the available opportunities, in light of the keen interest shown by the many enquiries received thus far. 

It is very difficult to ignore the market and Lotus will fill the gap in providing a lifestyle alternative to the growing demands of the affluent and market conscious local community,” Dato' Harith added.

"On April 7, 2015, Lotus announced 55% increase in car sales for its 2014/15 financial year, compared to the previous year with 36 new dealers appointed during the period 2014/15. 

And China has appeared to be the top key growth market for Lotus exports and is expected to grow at a very fast rate. Lotus Group is excited about the opportunities of this new Joint Venture," Jean-Marc Gales commented further.

Lotus will continue to manufacture its current range of Lotus sports cars (Evora, Exige and Elise) exclusively at its HQ in Hethel, England.