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Lotus F1 team $186 million in debt
Fri, 17 Jan 2014The Lotus F1 team has fallen on some hard times. Majority-owned by investment firm Genii Capital and having little to do with the British automaker with which it shares its name, the Enstone-based outfit has been widely reported to be in serious financial trouble. The extent of those difficulties were until now unknown, but a new report from Germany's Auto Motor und Sport reveals that the team is in the red to the tune of £114 million - equivalent to $186 million at today's conversion rates.
The lack in cashflow is widely believed to have been the impetus for Kimi Raikkonen's departure from the team in order to return to cash-rich Ferrari, and was one of the major factors in selecting Pastor Maldonado to replace him instead of a more proven and accomplished driver of Raikkonen's caliber. Maldonado brings with him major sponsorship funds from Venezuelan state oil company PDVSA. In speaking with the German publication, however, Lotus F1 chairman (and Genii co-founder) Gerald Lopez revealed that the lion's share of the team's debt - £80 million or $130 million - is with Genii Capital itself, a negative balance that isn't likely to affect the team's day to day. That leaves about $56 million which the team owes to outside parties, including Raikkonen, who has yet to receive the full pay he was contracted for.
The team has opted to sit out the first test session of the Formula One season at Jerez. Its 2014 chassis isn't ready and, given the relatively cold temperatures at this point in the year, the team wouldn't expect to learn much about tire performance and degradation. As far as the new engine goes, Lopez says that any knowledge gleaned by Red Bull, Toro Rosso and Caterham at the test session will ultimately be shared with Renault and through it back to Lotus as well. Lotus engineers helped develop the new KERS system with Renault regardless, so the team already has the energy-recovery data it needs. The team will instead prepare for the second test session in Bahrain, by which point it aims to have its new car ready to kick off the season. Lopez says that it has secured the funding to offset its costs for the season ahead, and that it is working to pay down its debt.
Lotus recalls 2008-2011 Elise, Exige and 2011 Evora over fire fear
Mon, 07 Jul 2014Lotus is recalling 860 vehicles after discovering that the oil cooler hose could detach from its fitting. Should the hose separate, it could spray oil on one of the lightweight car's tires, giving new meaning to the phrase "sudden loss of grip." The other case is, believe or not, more dire, as the spraying oil could hit the engine and ignite. Of course, neither situation is desirable, hence the recall.
The vast majority of the affected vehicles (780 of the 860) are the 2008 to 2011 Elise and Exige, built between November 2007 and July 2011. Another 80 Evora S coupes from 2011, manufactured between September 2010 and September 2011, are also included in the recall.
All repairs will, naturally, be completed free of charge. In the Elise/Exige's case, that means replacing the hose fittings, while the affected Evoras will get a new hose assembly.
Race Recap: 2013 Indian Grand Prix mostly calm with chances of Championships
Mon, 28 Oct 2013The smog around the Buddh International Circuit got so bad over the weekend that the FIA had to change the practice sessions. Then the soft tires that Pirelli brought to be the options were found to degrade so quickly that teams had to change their qualifying and race strategies. The only man it didn't seem to affect was - guess who? - Sebastian Vettel, who put his Infiniti Red Bull Racing on pole position.
Behind him came Nico Rosberg and Lewis Hamilton in the Mercedes-AMG Petronas, Mark Webber in the second Infiniti Red Bull and on medium tires, Felipe Massa in the first Ferrari, Kimi Räikkönen in the first Lotus, Nico Hülkenberg in the first Sauber, Fernando Alonso in the second Ferrari, and the McLaren duo of Sergio Perez and Jenson Button. The tire strategizing didn't work out for Romain Grosjean in the second Lotus, who didn't get out of Q1 after only running the medium compound tire and lined up 17th.
The Indian Grand Prix has been held twice and Vettel has led every single lap of both races. If nothing else, we knew there would be at least one new thing about this Indian Grand Prix: there'd be a lap not led by Vettel since he qualified on softs and would have to pit before Webber and Alonso who were both on mediums.