Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Report: '09 F1 participants needed to sell more than 25,000 cars to break even on investment]]>http://www.autoblog.com/2010/01/04/report-09-f1-participants-needed-to-sell-more-than-25-000-cars/http://www.autoblog.com/2010/01/04/report-09-f1-participants-needed-to-sell-more-than-25-000-cars/http://www.autoblog.com/2010/01/04/report-09-f1-participants-needed-to-sell-more-than-25-000-cars/#commentsFiled under: , , , , , ,



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]

Report: '09 F1 participants needed to sell more than 25,000 cars to break even on investment originally appeared on Autoblog on Mon, 04 Jan 2010 09:29:00 EST. Please see our terms for use of feeds.

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Renault R29 F1 - Click above for a high-res image gallery

After hinting at its displeasure, Renault has joined the the threats made by other manufacturer-supported teams (Ferrari chief among them) that they'll quit F1 if the FIA doesn't change its proposed rules for next season. The motorsport governing body put forward a new set of regulations that would effectively create a two-tier system in Formula One, forcing teams to choose between severely capped budgets or even further restricted parameters for building and fielding their cars in the series.

Like the other corporate teams, Renault can afford to sit out the season, objecting that the teams' voices have fallen on deaf ears and that the FIA is governing unilaterally, putting the onus on Max Mosley to rethink his strategy or else watch all the major teams march out. With the deadline for registration rapidly approaching, the controversial FIA chief is set to meet with the Formula One Teams Association sometime this week to see if they can iron out a deal, so stay tuned, or follow the jump to read Renault's statement in full.


Gallery: 2009 Renault R29 F1


[Source: Renault]

Continue reading Renault joins Ferrari with threats to leave Formula 1

Renault joins Ferrari with threats to leave Formula 1 originally appeared on Autoblog on Wed, 13 May 2009 14:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget capsBudgetCapsf1f1 budgetf1 budget capsf1 regulationsF1BudgetF1BudgetCapsF1Regulationsfiafia max mosleyFiaMaxMosleyflavio briatoreFlavioBriatoreformula 1formula oneformula one teams associationFormula1FormulaOneFormulaOneTeamsAssociationfotamax mosleyMaxMosleyquit f1QuitF1renaultrenault f1renault quitsrenault threatens to quit f1RenaultF1RenaultQuitsrenaultsportRenaultThreatensToQuitF1Wed, 13 May 2009 14:29:00 EST http://www.autoblog.com/feed/1544985/article-comments.xml http://www.autoblog.com/feed/2009/05/13/renault-joins-ferrari-with-threats-to-leave-formula-1/1544985/article-detail.xml 1544985 http://www.blogcdn.com/www.autoblog.com/media/2009/05/_o9t1889_opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/05/_o9t1889_opt.jpg <![CDATA[Despite downturn, Toyota re-commits to F1]]>http://www.autoblog.com/2008/12/23/despite-downturn-toyota-re-commits-to-f1/http://www.autoblog.com/2008/12/23/despite-downturn-toyota-re-commits-to-f1/http://www.autoblog.com/2008/12/23/despite-downturn-toyota-re-commits-to-f1/#commentsFiled under: ,



Toyota has reiterated its commitment to F1, in spite of its first annual operating loss since 1938. Said Toyota CEO Katsuake Watanabe of Toyota's F1 budget, still the largest in F1 at $445 million, "To keep it up at the current level is extremely difficult." Yet even with the loss, the global economic mess, the belt-tightening on the corporate side, and the fact that Toyota hasn't won a race in seven years, a Toyota spokesperson said, "We don't have anything to add to the statement we made on 5 December [committing to F1 after Honda's pullout -- Ed.] because the financial results don't change anything for us in the ­formula one team. Our situation has not changed." The FIA has suggested that next year's cost cutting measures will save teams 33% over their 2008 budgets. On top of that, Toyota is conducting its own cost cutting study to see what it can do over and above that. We have a feeling 2009 won't see Toyota on top of the big spenders list again.

[Source: The Guardian | Image: Clive Mason/Getty]

Despite downturn, Toyota re-commits to F1 originally appeared on Autoblog on Tue, 23 Dec 2008 19:58:00 EST. Please see our terms for use of feeds.

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Ever wonder how expensive it is for a manufacturer to compete in Formula 1 racing? Not surprisingly, it ain't cheap. Each of the successful teams spend hundreds of millions of dollars on their programs, but success is not necessarily tied in to how much dough was spent. For instance, Ferrari, winners of this year's constructor's championship with 172 total points, spent about $2.4 million per point in 2008. McLaren and BMW, numbers two and three respectively, spent a bit more than that figure, but still under a cool $3 mil. Honda and Toyota, though, had budgets nearly as large as the top-tier manufacturers yet scored significantly fewer points. In fact, Honda's meager 14 points cost the automaker over 28 million buckaroos a piece, making theirs the most expensive points of all. On average, teams spent about $4.3 million per point. No wonder the sport is looking to cut its budget as soon as possible. Thanks for the tip, Keith!

[Source: F1 Fanatic]

F1 budgets off the chart, $4.3 million per point originally appeared on Autoblog on Mon, 10 Nov 2008 17:33:00 EST. Please see our terms for use of feeds.

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