AFP - Renault confirmed Wednesday they are to remain in Formula One after selling off a large part of the team to Luxembourg company Genii Capital.
After weeks of uncertainty about their future, the French car manufacturer issued a statement revealing their link-up with Genii Capital, a company led by businessman Gerard Lopez.
Precise details of what percentage Genii Capital will hold were not given but it is reported to be in the region of 75 percent.
"Renault have decided to continue their commitment to Formula One with the support of a new strategic partner, Genii Capital, a Luxembourg company specialising in new technologies, image management and motor sport," the team said in a statement.
"Renault should transfer to Genii Capital a large part of the Renault F1 Team and the two partners will look after the management together," the statement continued, adding that the deal would be finalised early 2010.
This partnership will help "improve the cost-effectiveness of Renault's investments" at a time when the "automobile industry is going through a major crisis", the team said.
The agreement allows Renault to retain their name and identity which helped them become world champions with Fernando Alonso in 2005 and 2006.
The teams engines will continue to be supplied from the factory at Viry-Chatillon, outside Paris, with the manufacturer also announcing a renewed commitment from Red Bull Racing for 2010.
Renault recorded losses of 2.7 billion euros in the first four months of the year and were considering their future in a sport which costs about 100 million euros a year.
There has been speculation over Renault's future in F1 ever since the FIA, motorsport's governing body, issued a lifetime ban in September to their former team principal Flavio Briatore for ordering Nelson Piquet Junior to deliberately crash at the 2008 Singapore Grand Prix.
Pat Symonds, Renault's former chief engineer, was banned for five years.
Both men are currently appealing against their respective punishments.
Even without the fall-out from that scandal, worldwide economic problems have also called into question Renault's continued involvement in the sport during a 12-month period where other volume car manufacturers such as Honda, BMW and Toyota have all pulled out of Formula One.