Proposals to cut F1 costs include standard engines
10-20-08, 07:56 PM
#1
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Proposals to cut F1 costs include standard engines
LONDON -- Formula One's governing body has proposed radical cost-cutting measures, including the possible use of standard engines from 2010, to help teams survive the global financial storm.
In a letter to the 10 teams ahead of a meeting with International Automobile Federation (FIA) president Max Mosley in Geneva next week, and seen by Reuters on Wednesday, the governing body put forward a five-year plan of action.
"The FIA believes that Formula One costs are unsustainable," it said.
"Even before current global financial problems, teams were spending far more than their incomes.
"As a result, the independent teams are now dependent on the goodwill of rich individuals, while the manufacturers' teams depend on massive hand-outs from their parent companies.
"There is now a real danger that in some cases these subsidies will cease," added the FIA.
"This could result in a reduction in the number of competitors, adding to the two team vacancies we already have and reducing the grid to an unacceptable level."
The Paris-based body said the sport could only be healthy if a team could race competitively with a budget close to the revenues received from the commercial rights holder.
Honda-backed Super Aguri folded after the Spanish Grand Prix in April while a planned Prodrive team has been shelved.
Former champions Williams, who lost $37.54 million last year and are sponsored by both bailed-out British bank RBS and companies owned by troubled Icelandic retailer Baugur, are now the only team not funded by a manufacturer or a billionaire.
However, the future of even some of the manufacturer teams has begun to look uncertain against a backdrop of factory layoffs, steeply falling share prices and dwindling sales.
Some teams, such as Toyota, have annual budgets estimated to be in excess of $400 million.
The FIA, due to meet the Formula One Teams Association (FOTA) after Sunday's Chinese Grand Prix, put forward three proposals for the period 2010 to 2012.
The first was for an homologated engine produced by a single supplier, after a tender, with current engine makers free to build their own to the same design.
Another option would be for a consortium of teams to obtain a low cost engine from a single supplier, while a third alternative, proposed by FOTA, would see independent teams receive a complete powertrain (engine and gearbox) for less than $6.83 million (5 million euros) per team per season.
The latter arrangement would also include 18,641 miles (30,000 km) of testing and on-track assistance.
The FIA said it also envisaged common chassis parts, including standard suspension and wheels and other expensive parts which "add nothing to the spectacle or to the public interest of Formula One."
FOTA are due to hold meetings in Shanghai, with sources suggesting the ideas on the table could include a ban on refuelling, shorter races and testing restrictions.
The FIA said however that it believed priority should be given "to things which the public cannot see" such as telemetry rather than visible elements such as refuelling.
For 2013, it said it wanted to see a "modern high-technology" powertrain with a more compact engine using exhaust energy and heat recovery systems.
In a letter to the 10 teams ahead of a meeting with International Automobile Federation (FIA) president Max Mosley in Geneva next week, and seen by Reuters on Wednesday, the governing body put forward a five-year plan of action.
"The FIA believes that Formula One costs are unsustainable," it said.
"Even before current global financial problems, teams were spending far more than their incomes.
"As a result, the independent teams are now dependent on the goodwill of rich individuals, while the manufacturers' teams depend on massive hand-outs from their parent companies.
"There is now a real danger that in some cases these subsidies will cease," added the FIA.
"This could result in a reduction in the number of competitors, adding to the two team vacancies we already have and reducing the grid to an unacceptable level."
The Paris-based body said the sport could only be healthy if a team could race competitively with a budget close to the revenues received from the commercial rights holder.
Honda-backed Super Aguri folded after the Spanish Grand Prix in April while a planned Prodrive team has been shelved.
Former champions Williams, who lost $37.54 million last year and are sponsored by both bailed-out British bank RBS and companies owned by troubled Icelandic retailer Baugur, are now the only team not funded by a manufacturer or a billionaire.
However, the future of even some of the manufacturer teams has begun to look uncertain against a backdrop of factory layoffs, steeply falling share prices and dwindling sales.
Some teams, such as Toyota, have annual budgets estimated to be in excess of $400 million.
The FIA, due to meet the Formula One Teams Association (FOTA) after Sunday's Chinese Grand Prix, put forward three proposals for the period 2010 to 2012.
The first was for an homologated engine produced by a single supplier, after a tender, with current engine makers free to build their own to the same design.
Another option would be for a consortium of teams to obtain a low cost engine from a single supplier, while a third alternative, proposed by FOTA, would see independent teams receive a complete powertrain (engine and gearbox) for less than $6.83 million (5 million euros) per team per season.
The latter arrangement would also include 18,641 miles (30,000 km) of testing and on-track assistance.
The FIA said it also envisaged common chassis parts, including standard suspension and wheels and other expensive parts which "add nothing to the spectacle or to the public interest of Formula One."
FOTA are due to hold meetings in Shanghai, with sources suggesting the ideas on the table could include a ban on refuelling, shorter races and testing restrictions.
The FIA said however that it believed priority should be given "to things which the public cannot see" such as telemetry rather than visible elements such as refuelling.
For 2013, it said it wanted to see a "modern high-technology" powertrain with a more compact engine using exhaust energy and heat recovery systems.
10-21-08, 08:12 AM
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What a shame, F1 is supposed to be the pinnacle of motorsport and innovation with all the teams designing the best engine/chassis package based on their own ingenuity. The way things are headed, F1 is going to be a spec series 
10-21-08, 07:43 PM
#5
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A spec single supplier engine would be terrible. A spec engine that multiple manufacturers developed to and could be reasonably bought by other teams is less so. The sport is nothing if only 5 teams can compete on the grid. The lower end teams need some way of continuing to finance their existence in F1.
As much as I like all the crazy tech in F1 it has to get cheaper to run a team there or else we will see folks gone from the grids. It's too hard to raise $400M/yr in good times never mind when sponsors are going through tough times.
As much as I like all the crazy tech in F1 it has to get cheaper to run a team there or else we will see folks gone from the grids. It's too hard to raise $400M/yr in good times never mind when sponsors are going through tough times.
10-21-08, 08:04 PM
#6
Why is sport nothing if only 5 teams can compete on the grid? Not to mention this year as well as many other years, only 2 teams were "really" competing on the grid and rest were just filling the spots. Now some years there might be 3-4 some years it was only 1 team with realistic chance to win. Ok BMW did ok this year specially kubica throughout and Alonso and Vettel got better in 2nd half of the year but it's no different than many years before.
I never understood this idea that somehow it's better sport where everyone's same and it's a crapshoot. You can go watch NASCAR or spec miata race if you think that way is "better".
I never understood this idea that somehow it's better sport where everyone's same and it's a crapshoot. You can go watch NASCAR or spec miata race if you think that way is "better".
A spec single supplier engine would be terrible. A spec engine that multiple manufacturers developed to and could be reasonably bought by other teams is less so. The sport is nothing if only 5 teams can compete on the grid. The lower end teams need some way of continuing to finance their existence in F1.
As much as I like all the crazy tech in F1 it has to get cheaper to run a team there or else we will see folks gone from the grids. It's too hard to raise $400M/yr in good times never mind when sponsors are going through tough times.
As much as I like all the crazy tech in F1 it has to get cheaper to run a team there or else we will see folks gone from the grids. It's too hard to raise $400M/yr in good times never mind when sponsors are going through tough times.
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