(Reuters) - Renault will end Formula One engine production at their Viry-Chatillon factory after the 2025 season, with the French carmaker's Alpine team set to race with power units made by another manufacturer.
Alpine announced in a statement on Monday that the facility outside Paris, which employs more than 300 staff, would become a 'Hypertech' centre of engineering. It will include the establishment of an 'F1 monitoring unit'.
"Formula One activities at Viry, excluding the development of a new engine, will continue until the end of the 2025 season," it said.
"Each employee affected by this transformation project will be proposed a new position within Alpine Hypertech."
Alpine said the FI monitoring unit would "aim to maintain employees' knowledge and skills in this sport and remain at the forefront of innovation for Hypertech Alpine's various projects."
Alpine, ninth in the championship after repeated changes of leadership, are the only team using Renault power units. Their Formula One chassis factory is at Enstone in central England.
Employees at Viry accused Renault management in August of wanting to buy in Mercedes engines from 2026 to reduce direct costs from $120 million to $17 million.
"We fail to understand what justifies dismantling the elite entity that is the Viry-Chatillon factory and betraying its legacy and DNA by implanting a Mercedes heart into our Alpine F1," the works council said then in a statement .
"The announcement of the end of the development and production of French power units for Formula One is a nonsense."
There was no immediate reaction to Monday's announcement and there was no mention of any deal with Mercedes in the Alpine statement.
There has also been speculation that Renault could sell the team, although executive advisor and former boss Flavio Briatore said in August that would not happen.
"Creating this Hypertech Alpine centre is key to Alpine's development strategy and, more broadly, to the Group's innovation strategy," said Alpine CEO Philippe Krief in the statement.
"It is a turning point in the history of the Viry-Chatillon site, which will ensure the continuity of a savoir-faire and the inclusion of its rare skills in the Group's ambitious future while strengthening Alpine's position as an 'innovation garage'.
"Its racing DNA remains a cornerstone of the brand."
Formula One championship leaders McLaren use Mercedes engines, as do Williams, Aston Martin and Mercedes' factory team.
Aston are due to switch to Honda in 2026 when the sport introduces a new power unit, opening up a potential customer vacancy with Mercedes.
(Additional reporting by Gilles Guillaume in Paris, editing by Pritha Sarkar)
