F1 Teams Generally Receptive To Mosley's Cost-Cutting Initiative
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F1 Teams Receptive To Cost-Cutting Plan
Designed To Maintain Circuit's Viability |
The "proposed economy drive" in F1, sparked by FIA President Max Mosley's comments Tuesday that F1 must introduce spending cuts to survive, "has, conditionally, been well received," according to Simon Arron of the London TELEGRAPH. F1 Management Chair Bernie Ecclestone supports a standardized engine specification as part of cost-cutting measures, and F1 Honda team CEO Nick Fry said of the plan, "If standard equates to absolutely identical, an engine manufactured by a single source, that would be totally unacceptable to Honda and, I believe, most other car manufacturers, because it would remove part of the reason for being in F1. But if we are talking about a lower-cost engine that will be designed and manufactured to a more prescriptive specification, that would be acceptable." However, Fry does not believe such cost-cutting measures "can be implemented overnight." Fry: "If somebody told us to cut costs by, for instance, 30[%], existing contracts would make it very difficult for us to achieve by the end of 2009" (London TELEGRAPH, 10/10).
TEAMS SPEAK OUT: In a special to the London TELEGRAPH, Fry writes, "The budgets for the top teams are in excess of $300[M]. While that is sustainable for a team like Honda, we recognise that others cannot compete at that level. And central to the success of F1 is the need for competition. ... Unless we do something now some teams that are more exposed to commercial issues, the independent teams, are not going to be around." More Fry: "We need to reduce the cost of competing by 25[%] to a third in the short to medium term and improve the revenue flow" (London TELEGRAPH, 10/10). Also in a special to the TELEGRAPH, F1 team Force India Chief Technical Officer Mike Gascoyne writes, "Cost-cutting? I'm all for it, but I suppose people assume I would say that, wouldn't I, because I work with one of the smaller teams." Gascoyne writes the cost is "unrealistic in the current economic climate," and it is "imperative that F1 cars remain the fastest and most technically sophisticated in the world, but we have to be realistic." Gascoyne: "Fundamentally, Max Mosley's economy drive is absolutely right" (London TELEGRAPH, 10/10).
TURNING THE CORNER: The TELEGRAPH notes while F1 "had previously been considered an elitist event, given the huge costs involved in racing," Mosley "feels that view is changing and that a new audience is beginning to enjoy watching the sport." Mosley: "You notice there's a whole new public who are interested in Formula One, both in the UK but even more so abroad in all sorts of countries. Because, thanks to [driver Lewis Hamilton], it's no longer seen as a white elitist sport. ... For us, if he's successful it will be excellent, really, really good for Formula One. But that doesn't mean we're going to help him, and it certainly doesn't mean we're going to hinder him" (London TELEGRAPH, 10/10).
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Ecclestone Says India Will Host
Its First F1 Race In 2011 |
ALL AROUND THE WORLD: Ecclestone Friday said that India "will host a Formula One race for the first time" in 2011, and added that there "were also 'two or three options' in Russia." Ecclestone: "The first regards Moscow of course. But it is not yet time to think about a date." Meanwhile, Eccelstone said of the removal of the Canadian Grand Prix from the '09 schedule, which leaves North America without an F1 race, "In America they are organised by private entities, who want to make a profit even before the race has been held. It's a bit too much" (REUTERS, 10/10). The GLOBE & MAIL's Sean Gordon reports senior Quebec and Canada politicians are "vowing to spare no effort to save the Canadian Grand Prix." Federal Minister of Int'l Trade Michael Fortier, Quebec Minister of Economic Development Raymond Bachand and Montreal Mayor Gerald Tremblay "met with the race's private promoters [Thursday] with a view to finding out if the event can be salvaged." Fortier indicated that Ecclestone is "leaving the door open for an eventual return," and Fortier, Bachand and Tremblay "have agreed to meet with Ecclestone at the earliest opportunity -- although that won't happen until after next Tuesday's federal election." Sources said that the meeting with Ecclestone "could take place as early as 10 days or two weeks from now" (GLOBE & MAIL, 10/10).
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