Tony Fernandes has revealed he rejected a six million pound offer to settle the Lotus naming dispute that has embroiled two F1 teams.

After a 16-year absence, the Lotus name returned to Formula One last season under Fernandes, the flamboyant founder of Malaysia-based budget carrier AirAsia.

But in September, Malaysian automaker Proton, which owns a controlling stake in Lotus, terminated Fernandes’ licence, forcing him to drop the original name of Lotus Racing and compete as Team Lotus this season.

Then in December the Lotus group took a major equity stake in the Renault Formula One team for this season, which is now renamed ‘Lotus Renault GP’ for the 2011 season.

Fernandes and two other Malaysian associates bought the rights to use the Team Lotus name from David Hunt, brother of late British 1976 World Champion James Hunt.

State-owned Proton, which bought into Group Lotus in 1996, claims it alone has the rights to the brand and rejects Fernandes’ new Team Lotus incarnation.

“It was six million pounds for an out of court settlement. Of course I would like to end it but the proposal by Proton would have bankrupted the company. We could not accept it,” Fernandes told AFP.

Fernandes, a great fan of the Lotus glory days, said that 250 jobs, and huge investments by shareholders, were at risk.

“We never created the situation. We had a five-year agreement. Proton thought they can bully us out. We honestly worked hard to revive the Lotus name in F1,” he said.

Fernandes said he remained open to settling the dispute out of court as the March 21 hearing date in London’s High Court draws nearer, as the row is keeping sponsors away.

“I hope it will end soon. The legal row does not help. That is for sure.”

The head of Lotus Renault GP in January launched a bitter attack on rival Team Lotus, which he accused of damaging Formula One by fighting to keep the name of the legendary automaker.

“Honestly, there’s only one Lotus car company,” said Lotus Renault chairman Gerard Lopez.

“I don’t think there’s any question about who is going to be who on the race track, but I think it’s quite damaging to have that go around the Lotus name.”

Despite the complex legal dispute, Team Lotus is busy preparing for the season opening race in Bahrain on March 13. Unless an agreement is forged there will be two teams on the grid under similar names.

Team Lotus is aiming to finish the 2011 season in the top eight.

“At Valencia the team did a good time during pre-season testing,” Fernandes said.

The two drivers, Jarno Trulli and Heikki Kovalainen, made good progress in their new T128 car in the early February test.

Team Lotus chief executive Riad Asmat in December 2010 said they had anticipated Proton’s move into F1 but that it would not deter them from building on their 10th place achieved in the first season.

Formula 1 car design will undergo more radical change in the next 10 years than in the last decade, according to the new F1 Racing magazine.

The magazine, revamped at the end of last year, has teamed up with Renault F1 chief designer Pat Symonds to give motorsport fans a glimpse of what the F1 car of 2020 will look like and how it will perform.

Low-profile tyres on bigger wheels, the return of ground effects aerodynamics, Kinetic Energy Recovery Systems (KERS) that produce 250bhp and a standard, non-downforce rear wing will all be components, according to Symonds.

The article, featured in Issue 179 of F1 Racing, on sale from January 27, theorises on how future regulation changes could lead to radically-different F1 designs.

The results take into account the likelihood of future rules on fuel consumption and CO2 emissions but assume that F1 will remain an open-wheel, open-cockpit formula.

F1 teams have already been instructed to reduce their fuel consumption by 35% in future generations of racing cars, while a more environmentally-friendly 1.6-litre turbo engine will be introduced for the 2013 season.

Symonds said: “Taking into consideration all the variant motivators that drive regulations, I expect that the F1 car of 2020 will demonstrate much more change than has been seen over the past 10 years.

“A few simple assumptions can determine the basic architecture of the car,” he explains. “By the time we add a few changes, such as larger wheels and low-profile tyres, we start to get a fairly clear picture of what the car might look like.

“The illustrations we’ve produced are certainly an artistic impression, but they capture the essential characteristics of a car that will be contesting the Formula 1 World Championship in 2020.”

Group Lotus + Renault + Genii = Lotus Renault GP. That’s right people, there’s a little more confusion happening behind the F1 paddock, because Lotus, the manufacturer, is back! And its not owned by Tony Fernandez.

Group Lotus plc and Genii Capital are pleased to announce a partnership which will see the Renault F1 Team renamed as ‘Lotus Renault GP’ from the start of the 2011 racing season onwards. The association heralds the return of a highly successful Formula 1™ association between Lotus and Renault from the 1980s. Lotus’ racing pedigree and heritage coupled with Renault’s technology in Formula 1™ will set the united team on a path to future success.

Group Lotus plc will acquire a major equity stake in the team from Genii Capital. The transaction represents a partnership between Group Lotus and Genii Capital and signifies the beginning of a more comprehensive strategic alliance between the two organisations.

The partnership between Lotus and Genii brings the ability to quickly incorporate new technologies from F1™ cars into Lotus road cars including hybrid technology, Kinetic Energy Recovery Systems (KERS), aero advancements and lightweight materials. Genii, an investment holding company with a portfolio of automotive technologies, bring non-F1™ technologies such as lightweight braking systems, variable compression engine technology and on board software systems to the partnership.

Group Lotus CEO Dany Bahar said: “I can think of no better platform for automotive brand communications than motorsport and F1™. We’re well aware that there has been a lot of controversy around the usage of our brand in F1™ and I’m delighted to be able to formally clarify our position: We are Lotus, and we are back.”

Dato’ Sri Mohd Nadzmi Mohd Salleh, Chairman of Proton, Lotus majority shareholder, said: “We know that Group Lotus has much to offer Formula 1™ and vice versa. After careful consideration, we believe this arrangement will be fruitful, both from a commercial and marketing point of view.”

Tun Dr Mahathir Mohamad, Proton advisor and former Prime Minister of Malaysia,said: “This is an exciting development which delivers strategic benefits to both Group Lotus and Proton. I fully support the partnership.”

Carlos Ghosn, Chairman and CEO of Renault, commented: “This multi-partner alliance will bring a new dynamic to the team and enable it to compete with the sport’s best from next season.”

In addition to this, Genii is also offering Proton the ability to leverage on its existing business relationships in Russia and other parts of the world, as a means to expand Proton’s global reach. Through Genii, Proton can also potentially access advanced automotive technologies by virtue of Genii’s association with Mangrove, a venture capital group.

Gerard Lopez, founding partner of Genii Capital, said: “For Group Lotus, access to Formula 1™ opens up new marketing opportunities and a major platform for business exchanges and development. In this regard, Genii Capital possesses shareholdings in, and direct access to, cutting edge companies in the automotive industry. Our tie-up with Group Lotus and Proton, which will enable its future road car ranges to take advantage of significant new technologies, is a natural step.”

Team Principal Tony Fernandes, Chief Technical Officer Mike Gascoyne and Chief Executive Officer Riad Asmat gave their thoughts on the announcement today.

Tony Fernandes: “I am absolutely delighted that we can now officially talk about the partnership with Renault. There has obviously been a great deal of speculation about which engine will be powering our cars from 2011 and now the announcement has been made I think everyone can see just how ambitious we really are. The combination of the Renault engine and the Red Bull Technology gearbox and hydraulics gives our design and aero teams a successful, tried and tested platform to work with for next year’s car. 2010 has been all about building up our team from scratch and in just one year we have laid the foundations for many exciting seasons to come and the partnership with Renault will dramatically accelerate our development plans, both on and off track. That is an important point – we have started a partnership with Renault and, much like taking on experienced drivers in our first year, we will be working with people who know how to win and who will help push us even further forward towards the front of the grid. We are realistic – we know what needs to be done to be challenging for ultimate honours in Formula One™ and this partnership will play a very important role in helping us push ahead.”

Mike Gascoyne: “Today’s announcement is the latest confirmation of how far this team wants to go in Formula One™. Having worked with Renault before I know exactly what they will bring to our team and I am delighted that they will be playing an integral role in the next chapter of our story. The engine itself gives our designers, engineers and drivers an excellent platform to work with – it is very drivable, has good reliability and comes with a track support team who have a wealth of experience and knowledge. We are all looking forward to working with Renault and are very excited about the future for our partnership and our team.”

Riad Asmat: “This is a very big day for everyone in our team, in Malaysia and in the UK. Just over a year ago there were four people in an empty factory, and now we have announced an engine partnership with Renault, one of the most successful manufacturers in our sport’s history, a gearbox and hydraulics deal with Red Bull Technology and the start of the process of building our own wind tunnel at the factory in Hingham. We have come such a long way in a very short period, and today’s announcement will give the whole team even more enthusiasm for the challenges that lay ahead.”

Lotus Racing has just announced that the Anglo-Malaysian squad has agreed a deal with Red Bull Technology for the supply of gearboxes and hydraulic systems from the 2011 season and beyond.

The announcement marks the next critical building block in the process of stepping up the team’s challenge for honours in the FIA Formula One™ World Championship and is a major statement of intent about their future aspirations.

Mike Gascoyne, Lotus Racing Chief Technical Officer: “The announcement that we have reached a multi-year agreement with Red Bull Technology for the supply of our gearboxes and hydraulics from 2011 is obviously a massive step forward for us, both in engineering terms, and as an expression of our ambitions for next year and for future Championships. The gearbox / hydraulics package obviously plays a critical role in the performance of the car, not just on track but in design and packaging terms, and this deal gives our design and aero teams a very exciting platform to work with. The removal of the double diffusers in 2011 will allow the whole grid to tighten up the rear bodywork and mechanical structures around the gearbox, and this supply deal will allow us to capitalise on that with our 2011 car. Exciting times lie ahead!”.

Christian Horner, Red Bull Racing Team Principal added his thoughts: “We are very pleased about Lotus Racing’s decision to use Red Bull Technology gearboxes and hydraulic systems from 2011. The fact that Red Bull Technology has been chosen to be a supplier to another team despite its short history demonstrates how much we have achieved since our first season. We very much look forward to working with Lotus Racing from 2011 onwards.”

Tony Fernandes, Lotus Racing Team Principal: “Din, Nasa, the whole team and I are absolutely delighted to be able to announce our gearbox and hydraulics partnership with Red Bull Technology. It is a real statement of our intention to challenge for Formula One™ honours as soon as we can that we have reached this agreement and we are very excited about integrating the package into our 2011 car. I think people in and out of the sport are going to be following our progress even more closely now we have taken this incredibly important and ambitious step, and it makes next year even more exciting. The Lotus Racing dream grows bigger every day!”

From Left: Vitaly Petrov & Tung Ho Pin

With certain manufacturers such as BMW, Honda and Toyota having departed Formula One racing, we were almost certain that this year’s F1 event may not be as fun-filled as last year’s due to the recent global economic down-turn that heavily affect many car manufacturers.

Thankfully, Renault stayed in the sport was able to hook us up with a meet and greet session with Vitaly Petrov and Tung Ho Pin.

The main purpose of this session was to pit our skills against F1 talent. And in our cocky minds, we decided to lie to ourselves in that we’d stand a good chance in beating them. Optimism? I call this delusions of grandeur.

It was mid-morning and the sun began beating down upon us. We were separated into four groups where we’d take have 3 laps for practice and another 3 laps for qualifying, followed by a final 7 lap race for the top 10 karters who posted the best times. Admittedly, making it into the top 10 list wasn’t easy but placing 8th on the grid was good enough for me.

...unfair advantage!

To my surprise, it was a miniature version of Sepang’s circuit and to a bigger surprise, it was in reverse! Going counter clockwise was something unnatural to me, but needless to say, we were still “optimistic”. We were all going to put these F1 drivers to shame with some of our “local” talent!

The karts had 100cc 2-stroke engines with slick tires and electric starters. Once up to speed, they will throw you around in your seat, if it weren’t snug enough, around the corners. Having about half an inch on either side of my rib-cage, it was evident that I was unsettling the weight-balance of the kart due to my sudden weight shifts from left to right. Balance is tantamount in karting and needless to say, when the green flag was waved and the final session started, Vitaly and Ho Pin demonstrated their ability to manage the kart’s weight exceptionally, because we literally ate their dust.

Since the two F1 drivers were very much ahead of us all, they took the opportunity to have a good time goofing around by tailgating one another.

You Boys ready to go!?

By mid-day the session had ended and to say the least, it was certainly a smashing day with the drivers after having spun off countless times, having slight bruises on my ribs and especially a bruised ego to nurse back home.

Robert Kubica put Renault on top of the timesheets after an eventful first practice session at the Australian Formula One Grand Prix today. Kubica, who became Poland’s first F1 driver with BMW-Sauber in 2006, lapped the Albert Park street circuit in one minute, 26.927 seconds to pip Mercedes’s German driver Nico Rosberg by .199 seconds.

World champion Jenson Button briefly held the fastest lap but the McLaren driver finished with third quickest more than half a second off the pace. Brazil’s Felipe Massa, who finished second behind Ferrari team mate Fernando Alonso at the season-opener in Bahrain, came in fourth ahead of Red Bull’s Sebastian Vettel. Double world champion Alonso posted the fifth fastest lap ahead of McLaren’s Lewis Hamilton.

Michael Schumacher, a four-times winner at Albert Park, was again upstaged by his younger team mate Rosberg, posting the 12th fastest lap over one-and-a-half seconds off the pace.

Australian Mark Webber, touted as having his best chance to win his home grand prix in the much hyped Red Bull cars, ran off the track late in a disappointing session to finish with the 14th fastest lap.

Britain’s Paul di Resta marked his track debut at a grand prix weekend with the 11th fastest lap, after he replaced Team India’s German race regular Adrian Sutil in the session.

BMW Sauber driver Kamui Kobayashi came off the track at turn 11, losing part of his front wing, forcing the session to be red-flagged to clear the track.Minutes later, the Japanese driver’s wing came clean off to prompt another red flag. Kobayashi’s Spanish team mate Pedro de la Rosa also caused a yellow flag after grinding to a halt

Kubica and Petrov revealed the R30 to the assembled media, complete with its new black and yellow livery – the iconic colours made famous by Renault in the 1980s. With stable aero regulations the R30 is a mixture of evolution and revolution, and is much more svelte than its predecessor. In particular the rear of the car has been considerably reworked to allow the car to make the most of the double-decker diffusers that were first seen last year. Changes have also been made to the architecture of the chassis to adapt to the refuelling ban, which has required the installation of a much larger fuel tank.

The R30 will get its first run at Valencia on Monday and Renault will remain at the circuit until Wednesday evening to complete the first pre-season test session.