Renault has confirmed it will go ahead with its purchase of the Lotus F1 team, meaning the French manufacturer will return to the grid as a full works team next year.
Renault signed a letter of intent to buy the team in September, but it was not until Thursday that principal contracts were signed and chairman and CEO Carlos Ghosn confirmed the deal. A press release said work continues on finalising the acquisition in the "shortest timeframe possible" ahead of the release of more detailed information about the new team in January.
"Renault had two options: to come back at 100 per cent or leave," Ghosn said. "After a detailed study, I have decided that Renault will be in Formula One, 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."
Renault decided earlier this year that it was not getting enough exposure from its investment by running solely as an engine supplier in Formula One. A lack of power and reliability from its power unit resulted in a deterioration of its relationship with chassis partner Red Bull and the French manufacturer started looking into the possibility of buying its own team.
Although Lotus had racked up a considerable amount of debt this year, Renault considered it to be the best fit for its return. The team was owned by Renault between 2000 and 2010 and won titles for two years running in 2005 and 2006.
"Renault's decision to continue its involvement in Formula One is confirmation that it sees motorsport as an essential part of the brand's identity," the Renault press release read. "Formula One is the ultimate symbol of the passion for automobiles.
"In addition to attracting many customers, Formula One also fuels employee motivation. As the pinnacle of motor sport, Formula One 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 One 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.
"Formula One is one of the sports that enjoys the most media coverage worldwide thanks to a following on five continents, particularly 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."