Renault set to take over Lotus F1 team

French car maker Renault has confirmed its intentions of taking a controlling stake in Lotus F1 team for the 2016 season and beyond.

Renault amassed four consecutive titles as an engine supplier between 2010-13, before a change in regulations led to a significant drop-off in performance. The subsequent criticism from car partners Red Bull has forced Renault to evaluate its options in F1, with the takeover of the Lotus F1 team now officially under the works.

The two parties have signed a letter of intent to complete the acquisition, subject to various terms and conditions.

“Renault Group and Gravity Motorsports S.a.r.l., an affiliate of Genii Capital SA, are pleased to announce the signature of a Letter of Intent regarding the potential acquisition by Renault of a controlling stake in Lotus F1 Team Ltd,’’ the official statement read.

"The signature of this Letter of Intent marks Renault’s first step towards the project of a Renault Formula 1 team from the 2016 racing season thereby extending 38 years of commitment of the brand to world’s premier motorsport championship series."

Renault pulled out of Formula 1 at the end of 2010 season after its top-level F1 management was found guilty of fixing the 2008 Singapore Grand Prix, a scandal infamously known as the ‘crashgate’.

Prior to this, the team won consecutive world titles in 2005 and 2006, with Spaniard Fernando Alonso behind the wheel.