10/04/2020
NEWS STORY
In a statement issued this afternoon (Friday), Renault, whose market value has crashed by $3bn since the start of the year, announced measures to partially or totally reduce activities at both its Viry-Chatillon and Enstone sites.
"The crisis we have faced over the past weeks is unprecedented," admits the French team. "Clear directives from the FIA and Formula One, plus the mobilisation of all stakeholders engaged in the sport, has made it possible to take several decisions to protect the teams in the short term and to strengthen our sport in the medium term.
"In this context, Renault Sport Racing decided to observe the early and extended FIA shutdown for its Viry-Chatillon and Enstone sites, from March 30th to May 3rd inclusive."
At Viry-Chatillon, Renault has decided to use a part-time schedule from April 6th for a provisional period of 12 weeks. This period may be reduced or extended dependent on the development of the situation.
The decision was taken in consultation with employee representatives and was supported by a solidarity agreement aimed to protect the company and its employees.
For activities not covered by the FIA shutdown - Formula E and Customer Racing - work will resume depending on health conditions and the needs of the company.
At Enstone, Renault has decided to "retrospectively apply for the Job Retention Scheme set up by the British government," adds the statement. "As of April 1st, the vast majority of Enstone staff will effectively have a total shutdown (furlough) until May 31st. This will be reviewed dependent on the development of the situation.
"It was also agreed to top-up the amount allocated by the government to guarantee a minimum of 80% of the actual salary for all team members. Salaries of active staff, including management, will be reduced in the same proportions.
“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 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.”
It is worth noting that currently the furlough scheme only runs until June, with the government yet to confirm what will happen after that time.