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Lotus to layoff a quarter of its workforce

Lotus has issued a press release to day, wherein it indicates that a "need to both reshape its organisation and to reduce costs" may result in the loss of "up to 325" jobs. That's a fairly significant number of layoffs for any company, but considering that Lotus currently employs 1,215 people (per the company's bio in the same release), it could mean a full 25-percent of the automaker's workers could soon be sharpening their resumes.
CEO Jean-Marc Gales says in the statement that Lotus has "worked very hard to avoid the need to make this proposal," but admits that it is now "essential" to the future of the company. The chief indicates that post-restructuring, he expects Lotus to be a "leaner" and "more competitive" organization, one which - and we can all see a little silver lining here - is focused on "producing class-leading sports cars and innovative engineering."
The 325-job number appears to be soft at this point, with the statement indicating that some negotiation about which and how many posts will be cut is yet to come. Further, the company may "redeploy" some employees, and may even recruit new blood for "key roles," all with an eye toward running the strongest possible team going forward. Though, we imagine that the recruitment bit won't fly well for those employees getting the sack.

European commission investigating F1 finances and anti-competitive accusations

The Kingdom of Formula One reminds us of renaissance Florence - ruled by a singular chieftan behind a mask of representative involvement, rife with spectacularly convoluted machinations, awash in innovations that help define our world and far-flung, vindictive misery. If we found out Bernie Ecclestone's real last name was de Medici, well, it would explain a lot. Now after a bit of back-and-forth, the European Commission (EC) has taken aim at the kingdom, investigating whether F1 is anti-competitive and if the FIA has abused its antitrust agreement. The reason for EC scrutiny is that a British member of the European Parliament who represents an area in southwest England, Anneliese Dodds, has fielded complaints from engineering companies in her constituency that recent moves in F1 have put them out of business. She wrote to the EC to question why the FIA now has a stake in F1 when it signed an agreement in 2001 to be solely a governing body and abdicate any stakeholding in the sport. She also questioned the F1 Strategy Group, a group of the six top teams in F1 that makes decisions about the direction of the sport; she says that the Strategy Group not only appears to be a case of the F1 shirking its rule-making duty, it has resulted in unfair treatment of the small teams that aren't in the group. Dodds has a bit of a point. In 2001, the FIA sold F1's commercial rights to Ecclestone for 100 years for a sum of $313.7 million. That was done to placate European regulators who insisted that "the role of FIA will be limited to that of a sports regulator, with no commercial conflicts of interest." Although the rights are ultimately owned by the FIA and bring in a $10M fee every year from Formula One, those rights bring in $1.6 billion each year to Formula One Management (FOM), the company that owns F1. When Ecclestone was trying to get the new Concorde Agreement signed in 2013 that governs the running of the sport, the FIA wouldn't sign, saying it wanted F1 to share a larger slice of its revenue – the FIA has been losing money for years, see. To the get the FIA to sign, Ecclestone sold it a one-percent stake in F1 for $460,000 and gave the FIA a $5M signing 'bonus;' whenever F1 has its IPO, that stake is estimated to be worth about $120 million - not a bad return. Yet, according to the aforementioned 2001 agreement, the FIA can't have that equity stake.

Lotus drops Renault for Mercedes F1 engines

With only three manufacturers supplying engines in Formula One this season, the teams have been fairly evenly split: Ferrari, Sauber and Marussia use Ferrari engines; Mercedes, McLaren, Williams and Force India run on Mercedes power; Red Bull, Toro Rosso, Lotus and Caterham employ Renault power units. But one important team is reportedly preparing to ditch Renault and switch to Mercedes for next year.
That team is Lotus, an outfit which has fallen off its pace the past few seasons but which has still been a vital partner for Renault. That's because until a few seasons ago, the team based in Enstone, UK, was owned by Renault and bore the company's name. The operation was founded in 1981 as Toleman, was rechristened Benetton in 1986, bought by Renault 2000, taking the company's name in 2002, sold to its current owners Genii Capital 2009 and adopting the black and gold Lotus livery in 2011. As Benetton, it ran Ford engines until switching to Renault in 1995, sticking with the French outfit ever since, but that decades-long partnership - which meandered through Renault ownership and back out again - is now apparently drawing to a close.
The departure of Lotus as a customer team ought to allow Renault to focus instead on its increasing ties with Red Bull, which has taken the Enstone team's place as Renault's principal team. It could prove a smart move for the Lotus team as well, as the Mercedes engines have been outperforming the Renault units this season by an order of magnitude: not only is Mercedes far outpacing Red Bull at the top of the standings, but each of Mercedes' customer teams is performing better than Renault's clients.