| By Lawrence Barretto | |
| F1 Reporter |
Ford doesn't fancy it. Neither does BMW. Toyota is also out. Formula 1's bold new era under new owner Liberty Media has begun with three of the world's major car manufacturers ruling themselves out of a return to the pinnacle of motorsport. Mercedes, Renault and Ferrari are committed to F1 until at least 2020, with Honda insisting its project with McLaren is long term, but should new chief Chase Carey and co be concerned about the future? American car giant Ford says the huge cost involved in an F1 programme is the main deterrent. It feels its presence in other series - GT racing, rallying and rallycross - is more relevant to its "goals and objectives" in "developing our tools, technology and people and translating that into road cars". BMW is happy with its DTM and GT racing programmes while it is also evaluating a full-entry in Formula E for the 2018/19 season. Toyota's commitment, meanwhile, is to the World Endurance Championship and World Rally Championship. And last year, Audi said F1 was not on its agenda either and then pulled out of the WEC ostensibly to focus on Formula E. It's a massive kick in the teeth to F1, which in 2003/04 had seven manufacturers (or on paper, eight) involved - Ferrari, BMW, Mercedes, Renault, Honda, Toyota and Jaguar/Ford. A decade later and that number has halved with just Ferrari, Renault, Mercedes and Honda still around.
When the engine regulations were overhauled ahead of 2014, there was a belief that by moving to hybrid turbo power and becoming more relevant to road technology, carmakers could be persuaded to stay in and/or be attracted to F1. At that point there were only three manufacturers, and while Honda then came onboard it was not exactly the flurry that had been hoped for. Equally, the Japanese manufacturer's very public struggle was hardly what was needed to entice prospective carmakers to join the party. It was then agreed to stabilise the regulations between 2017 and '20 in an effort to control the cost and encourage performance convergence. But there has still been very little interest from manufacturers. Governing body the FIA is hoping carmarkers not currently involved in F1 can play a part in discussions to frame engine rules for 2021 and beyond. But as indicated by the table below, which charts manufacturers defined as a genuine carmaker effort rather name a rebadging exercise or works engine programme during the last 20 seasons, it's going to take a mighty push to encourage car or engine makers back into F1.
Manufacturers in Formula 1Works involvement in F1 since 1997 (team or engine supplier) and the number of race-winning teams
The numbers increased from a late-1990s drop heading towards 2004 and held steady at six in '06-08 - the V8 era - before declining from '09 with BMW and Toyota pulling out at the end of that season. Manufacturers remain interested in motor racing. The WEC lost Audi at the end of last season, but remains important to Porsche and Toyota in LMP1 and a raft of marques competing in the GT class. In Formula E, the interest is growing. Renault is already involved, winning last year's drivers' and teams' titles with the factory-backed e.dams squad. Citroen's sister brand DS competes with Virgin Racing while Jaguar made its debut this season and BMW has an engineering partnership with the Andretti team with an eye on a fully-fledged factory entry from 2018/19. Audi has upped its involvement in the Abt team for the current campaign and will induct it into its works motorsport programmes from 2017/18. Mercedes has secured an entry for the 2018/19 season, when the electric series intends to switch to single-car races and expand the grid from 10 teams to 12. Even Sauber has said it seriously considered taking up an entry slot for the inaugural Formula E season and is still evaluating doing so in the future. In announcing Mercedes' Formula E interest, motorsport boss Toto Wolff said: "Electrification will play a major role in the future of the automotive industry - racing has always been a technology R&D platform for the motor industry, and this will make Formula E very relevant in the future."
Mercedes remains contractually committed to F1 until the end of the 2020 season, but it is noteworthy that it suggested Formula E is the future with its technology a key reason for getting involved. It echoes its push in F1 in recent years towards a hybrid turbo engine. Should that change beyond 2020, will Mercedes still want to stay involved in F1? And is that bad news for Liberty and the championship? If BMW, Ford, Toyota and Audi feel F1 is too expensive and lacks the relevance to its road car business, there is an argument for suggesting Liberty should look to address those two areas as a matter of urgency. But on the other hand, in Mercedes, Ferrari, Renault and Honda, it has four manufacturers who have committed long term to F1, sticking with the series through the various regulation changes. Therefore, it must be doing something right. History proves that while manufacturers may come and go, there are always a handful that stay because they know their presence in F1 is good for business. Tasting success will only have a positive impact on its road car sales. Toyota and BMW knew how important winning was, and when they didn't achieve it - Toyota at all and BMW more than once - having thrown bucket loads of money at it, they left. Mercedes, in contrast, persevered and has a hat-trick of drivers' and constructors' titles to show for it.
It revealed impressive figures in its financial accounts up to the end of 2015 for Mercedes-Benz Grand Prix Ltd, the company name of the F1 team. It showed an increase in turnover of £66.3million and a reduced post-tax loss of £22.3m. That represented a significant improvement on the previous year's accounts, in which the outfit reported a post-tax loss of £76.1m. It is believed Mercedes has grown turnover by 86% since 2011, a year after it returned to F1, which bucks the market trend in a difficult sponsorship climate. And it feels that it is on track to break even. That will please the Daimler board, which will feel it is getting a good return in terms of exposure for its spend in F1. Looking at motor racing series across the world, the truly global ones - such as F1, the WEC, WRC and MotoGP - retain a solid manufacturer presence, which suggests that while carmakers may not be able to compete in all of them, retaining their place in a championship that spans several countries remains important. National categories such as the British Touring Car Championship have continued following manufacturer withdrawals, but it is naturally operating on a significantly smaller scale with a much smaller audience. A complete manufacturer pull-out from F1 is unlikely, but could it cope with only a handful in the long term? In 2003, there were seven manufacturers and it was a thrilling season. Five different teams won, eight different drivers took victory and three teams were in the title fight - Ferrari (Michael Schumacher), Williams (Juan Pablo Montoya) and McLaren (Kimi Raikkonen) until late in the season before Schumacher clinched his sixth title.
But the following year, with seven manufacturers still involved, was not so exciting even though four different teams won a race. Schumacher won 12 of the first 13 races, with Ferrari winning 15 in total as Williams, McLaren and Renault shared the remaining three wins between them. Then 2012, with just three manufacturers, proved to be an exciting season with the first seven races being won by seven different drivers. Sebastian Vettel won his third title, but it went down to a decider in Brazil. The next year, the same number of manufacturers remained, but the championship was less exciting with Vettel winning the final nine races as he clinched the title with ease. Figures from the last 20 years suggest big manufacturer presence isn't critical to ensure an exciting championship. And while F1 has had a decline in the number of carmakers involved, the number has not dropped below three in the last 20 years. You could argue that the more manufacturers in F1, the less likely it is that more will join because the chances of the carmaker winning, and therefore getting a return on its investment, become lower. That explains why, over the years, carmakers have dipped in and out of F1. Even that has ensured there has been a consistent manufacturer presence - regardless of whether the quantity and variants change. So there's no need to panic when BMW, Toyota and Ford decline interest in F1. Who says they won't change their mind if a couple of current manufacturers drop out and suddenly the chances of success - and subsequent return on investment - increases? F1 is built on a mix of manufacturers and independents, and that balance is likely to continue to ebb and flow exactly as it has for a long time.
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| By Lawrence Barretto | |
| F1 Reporter |
Ford doesn't fancy it. Neither does BMW. Toyota is also out. Formula 1's bold new era under new owner Liberty Media has begun with three of the world's major car manufacturers ruling themselves out of a return to the pinnacle of motorsport. Mercedes, Renault and Ferrari are committed to F1 until at least 2020, with Honda insisting its project with McLaren is long term, but should new chief Chase Carey and co be concerned about the future? American car giant Ford says the huge cost involved in an F1 programme is the main deterrent. It feels its presence in other series - GT racing, rallying and rallycross - is more relevant to its "goals and objectives" in "developing our tools, technology and people and translating that into road cars". BMW is happy with its DTM and GT racing programmes while it is also evaluating a full-entry in Formula E for the 2018/19 season. Toyota's commitment, meanwhile, is to the World Endurance Championship and World Rally Championship. And last year, Audi said F1 was not on its agenda either and then pulled out of the WEC ostensibly to focus on Formula E. It's a massive kick in the teeth to F1, which in 2003/04 had seven manufacturers (or on paper, eight) involved - Ferrari, BMW, Mercedes, Renault, Honda, Toyota and Jaguar/Ford. A decade later and that number has halved with just Ferrari, Renault, Mercedes and Honda still around.
When the engine regulations were overhauled ahead of 2014, there was a belief that by moving to hybrid turbo power and becoming more relevant to road technology, carmakers could be persuaded to stay in and/or be attracted to F1. At that point there were only three manufacturers, and while Honda then came onboard it was not exactly the flurry that had been hoped for. Equally, the Japanese manufacturer's very public struggle was hardly what was needed to entice prospective carmakers to join the party. It was then agreed to stabilise the regulations between 2017 and '20 in an effort to control the cost and encourage performance convergence. But there has still been very little interest from manufacturers. Governing body the FIA is hoping carmarkers not currently involved in F1 can play a part in discussions to frame engine rules for 2021 and beyond. But as indicated by the table below, which charts manufacturers defined as a genuine carmaker effort rather name a rebadging exercise or works engine programme during the last 20 seasons, it's going to take a mighty push to encourage car or engine makers back into F1.
Manufacturers in Formula 1Works involvement in F1 since 1997 (team or engine supplier) and the number of race-winning teams
The numbers increased from a late-1990s drop heading towards 2004 and held steady at six in '06-08 - the V8 era - before declining from '09 with BMW and Toyota pulling out at the end of that season. Manufacturers remain interested in motor racing. The WEC lost Audi at the end of last season, but remains important to Porsche and Toyota in LMP1 and a raft of marques competing in the GT class. In Formula E, the interest is growing. Renault is already involved, winning last year's drivers' and teams' titles with the factory-backed e.dams squad. Citroen's sister brand DS competes with Virgin Racing while Jaguar made its debut this season and BMW has an engineering partnership with the Andretti team with an eye on a fully-fledged factory entry from 2018/19. Audi has upped its involvement in the Abt team for the current campaign and will induct it into its works motorsport programmes from 2017/18. Mercedes has secured an entry for the 2018/19 season, when the electric series intends to switch to single-car races and expand the grid from 10 teams to 12. Even Sauber has said it seriously considered taking up an entry slot for the inaugural Formula E season and is still evaluating doing so in the future. In announcing Mercedes' Formula E interest, motorsport boss Toto Wolff said: "Electrification will play a major role in the future of the automotive industry - racing has always been a technology R&D platform for the motor industry, and this will make Formula E very relevant in the future."
Mercedes remains contractually committed to F1 until the end of the 2020 season, but it is noteworthy that it suggested Formula E is the future with its technology a key reason for getting involved. It echoes its push in F1 in recent years towards a hybrid turbo engine. Should that change beyond 2020, will Mercedes still want to stay involved in F1? And is that bad news for Liberty and the championship? If BMW, Ford, Toyota and Audi feel F1 is too expensive and lacks the relevance to its road car business, there is an argument for suggesting Liberty should look to address those two areas as a matter of urgency. But on the other hand, in Mercedes, Ferrari, Renault and Honda, it has four manufacturers who have committed long term to F1, sticking with the series through the various regulation changes. Therefore, it must be doing something right. History proves that while manufacturers may come and go, there are always a handful that stay because they know their presence in F1 is good for business. Tasting success will only have a positive impact on its road car sales. Toyota and BMW knew how important winning was, and when they didn't achieve it - Toyota at all and BMW more than once - having thrown bucket loads of money at it, they left. Mercedes, in contrast, persevered and has a hat-trick of drivers' and constructors' titles to show for it.
It revealed impressive figures in its financial accounts up to the end of 2015 for Mercedes-Benz Grand Prix Ltd, the company name of the F1 team. It showed an increase in turnover of £66.3million and a reduced post-tax loss of £22.3m. That represented a significant improvement on the previous year's accounts, in which the outfit reported a post-tax loss of £76.1m. It is believed Mercedes has grown turnover by 86% since 2011, a year after it returned to F1, which bucks the market trend in a difficult sponsorship climate. And it feels that it is on track to break even. That will please the Daimler board, which will feel it is getting a good return in terms of exposure for its spend in F1. Looking at motor racing series across the world, the truly global ones - such as F1, the WEC, WRC and MotoGP - retain a solid manufacturer presence, which suggests that while carmakers may not be able to compete in all of them, retaining their place in a championship that spans several countries remains important. National categories such as the British Touring Car Championship have continued following manufacturer withdrawals, but it is naturally operating on a significantly smaller scale with a much smaller audience. A complete manufacturer pull-out from F1 is unlikely, but could it cope with only a handful in the long term? In 2003, there were seven manufacturers and it was a thrilling season. Five different teams won, eight different drivers took victory and three teams were in the title fight - Ferrari (Michael Schumacher), Williams (Juan Pablo Montoya) and McLaren (Kimi Raikkonen) until late in the season before Schumacher clinched his sixth title.
But the following year, with seven manufacturers still involved, was not so exciting even though four different teams won a race. Schumacher won 12 of the first 13 races, with Ferrari winning 15 in total as Williams, McLaren and Renault shared the remaining three wins between them. Then 2012, with just three manufacturers, proved to be an exciting season with the first seven races being won by seven different drivers. Sebastian Vettel won his third title, but it went down to a decider in Brazil. The next year, the same number of manufacturers remained, but the championship was less exciting with Vettel winning the final nine races as he clinched the title with ease. Figures from the last 20 years suggest big manufacturer presence isn't critical to ensure an exciting championship. And while F1 has had a decline in the number of carmakers involved, the number has not dropped below three in the last 20 years. You could argue that the more manufacturers in F1, the less likely it is that more will join because the chances of the carmaker winning, and therefore getting a return on its investment, become lower. That explains why, over the years, carmakers have dipped in and out of F1. Even that has ensured there has been a consistent manufacturer presence - regardless of whether the quantity and variants change. So there's no need to panic when BMW, Toyota and Ford decline interest in F1. Who says they won't change their mind if a couple of current manufacturers drop out and suddenly the chances of success - and subsequent return on investment - increases? F1 is built on a mix of manufacturers and independents, and that balance is likely to continue to ebb and flow exactly as it has for a long time.
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