• Jan 4th 2010 at 9:29AM
  • 13
Melbourne, Australia newspaper The Age has a story on the break-even point for automakers in Formula One. The numbers are based on research done by Formula Money, a company devoted to detailing the financial goings-on in F1 – however, they don't make much sense at first glance. According to The Age, F1's manufacturer-backed teams "Ferrari, Mercedes-Benz, BMW, Renault and Toyota spent €608 million ($970 million) on Formula One racing" last year. To recoup that total investment they needed to sell at least 25,000 cars, combined, at an average price of $38,800.

The questions arise when it is claimed that Ferrari "makes €275,000 ($393,643 U.S.) per car sold, and so only needs to sell 153 vehicles to break even on its €42 million ($60 million U.S.) investment in F1." We can hardly believe Ferrari spent just $60M on F1 last year; if so, that would have left the other four teams to spend an average of $227.5M apiece based on a total spend of $970M.

According to F1 Fanatic's team budget numbers for 2008, Ferrari spent $414.9 million, and going by F1 Network's numbers for 2009, Ferrari spent $365 million last year. We don't know where the truth is among the numbers in The Age's report. What we do know, however, is that no matter what the real numbers are, they never added up for BMW, Renault or Toyota.

[Source: The Age]

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    • 1 Second Ago
      • 5 Years Ago
      Ferrari don't even make most of their money from cars, most of it comes from mechanizing.
      • 5 Years Ago
      The difference is that Ferrari, even in a very bad year, was winning, which is the deciding factor!!!
      If you do not win it does not matter if you spend a little or a lot, it does not pay...
      • 5 Years Ago
      new math?
      • 5 Years Ago
      Maybe someone needs to tell these people that revenue isn't the same as gross or net profit.

      There is the potential that this article might have an ounce of validity if it was restated as "'09 F1 participant needed to sell more than 25,000 cars to break even on investment, providing they received all of those cars for free and they cost $0 to sell."

      As it stands, its has about as much worth as an Amy Winehouse Sex tape.
      • 5 Years Ago
      Umm this article is definately not credible, I mean they say Ferrari makes $393K per car????? Are you kidding me that's impossible is this Autoblog Inquirer now?
      • 5 Years Ago
      Whoever wrote that is probably a retard... A significant if not the majority of the money spent by all F1 teams comes from sponsors, suppliers, prizes, share of F1 TV rights, etc... Ferrari sells roughly 6500 cars per year with revenues of approx. $2.7 billion...surely there isn't enough profits there to support a $400 million + budget for F1. Details of how that money is broken down is a well kept secret by each of the teams.

      FYI, 2008 F1 team resources including sponsorship, supplier deals, prize money, team owner contributions, tyre provision and supply of customer engines where appropriate.

      Toyota: $445.6m
      McLaren: $433.3m
      Ferrari: $414.9m
      Honda: $398.1m
      Renault: $393.8m
      BMW Sauber: $366.8m
      Red Bull Racing: $164.7m
      Williams: $160.6m
      Toro Rosso: $128.2m
      Force India: $121.85m
      Super Aguri: $45.6m
      • 5 Years Ago
      uh, ok?
        • 5 Years Ago
        Seems they got an intern to write that one: Any high school grad knows this doesn't add up. Ferrari "makes $393k" per car? In which alternate reality?

        If they're really covering the F1 money pit, they ought to be looking for new jobs.
        • 5 Years Ago
        They seem to be manipulating more numbers then a fortune 500 company.

        Seems all find and dandy on the outside until you start breaking down the numbers and doing the math. Next thing you know, your saying your gonna make $60mil and end up with $60.
      • 5 Years Ago
      How is this a complete story?

      • 5 Years Ago
      Ferrari is a completely different story than Toyota, BMW and Renault. Every Ferrari sold has some kind of F1 technology in it. Therefore every dollar spent on new technology is directly put to use on every car sold.
      • 5 Years Ago
      what? They are calculating by the prices of sold cars, not by actual profits from selling cars?
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