The deal for Lotus to use Mercedes power units from 2015 will be confirmed in the next few days.

The new arrangement, which was predicted here on June 24, sees Lotus take over the supply made available by McLaren’s move to Honda for next season.

At one stage an announcement was scheduled for yesterday, but after a delay it could now come at the start of next week. Lotus had an ongoing contract with Renault, and a legal accommodation has had to be made between the two parties.

Meanwhile sources close to Mercedes confirm that the Stuttgart manufacturer has received the financial guarantees that it required from Lotus. It’s no secret that the team has been late with payments to Renault over the last couple of years.

In similar situations in the past funds owed to teams by FOM have been directed straight to engine suppliers in order to guarantee payment.

The Mercedes deal means that the Enstone outfit will end a connection with Renault that began with Michael Schumacher’s 1995 World Championship, and lasted for 20 seasons. The prospect of a more competitive power unit will clearly allow Lotus to keep its sponsors happy, especially PDVSA.

Here’s what I wrote last week: https://adamcooperf1.com/2014/06/24/could-lotus-switch-to-mercedes-power-from-2015/