F1 RACING JANUARY 2020 29PRO
RACINGEssential guideto the business of F1
STRAIGHT
TALK
ListeningtoAstonMartin’sV12-powered
Valkyriescreaming its way around Silverstone
in mid-November,thoughtsturned to engine
supplier Cosworthand thedilemma of Formula1’s
unhealthy relianceon car companies as we enter
a dec ade of change within the automotive industry.
It never takes much turbulenceto caus e
manufacturerstoca st a bea n counter’s eye in the
direction ofF1, as recent events haveshown.
Since thearrest of its Chairma n and CEO Carlos
Ghosn in November 2018, Renaulthas endu red
unprecedented boardroom turmoil and tough
trading conditions. Theappointmentin October
of former accountant Clotilde Delbos asRenault’s
interimChief Executive raised eyebrows when she
confirmed adeep reviewof the company’s business
would include itscontin ued pa rticipation in F1.
While Renault F1’s Cyril Abiteboulexpressed
confidence inreceiving ongoin g support, a difficult
2019 season for the Enstone team meantit facedIS F1 HEADED
FOR AN ENGINE
SUPPLY CRISIS?
the twi n embar rassmentof being beaten by sol e customer McLaren
and then losing thatsupply deal to Mercedesstarting in 2021.The
optics arethat of a manufacturerunable to retain itscustomers and
strug gling tomake the necessary breakthrough to win.
Meanwhile at Mercedes-Benz, theannouncement by parent
Daimler inNove mber that it would beseek ing to cut 1000 jobsand
set about saving €1 billion by 2022,illustratedthe industry-wide
pressurescaused by the accelerated move towardselectric vehicles
amid tougher-then-ever emissi ons targets.
Mercedes’F1 o peration is robust, itsracing successes guaranteeing
stro ng r evenues from F1’s prize fund, healthy sponsorship andvital
income for its Brixworth engine division thanksto the supply of
enginesto Ra cing Point,Williams and soon McLaren. However,
other factorscould come into playin the years ahead, includingthe
relevance of continuing in a sport that holdsthe internal combustion
engine close to itsheart.
At Honda, a return to the top step of the podium with Red Bull
has eased the pressuresthe F ormula 1 programme was facing but, as
Jenson Button and Ross Brawn will happily
tell you, when the core business comes
under threat Tokyo head office can say
‘sayonara’ overnight.
If one manufacturerwere to qu it F1 the
effect would not be dramatic,but if two were
to go ina 2008-style downturn, spurred
by the growingclimate crisis and pressure
from regulatorsto abandon ICEtechno logy
completely, F1 and the FIAwould find
themselves in abind.Withno pr ospect of
additional manufacturersdeveloping the
highly complex power unitswe see today,
the balance of powerwould shiftinexorably
towardsMaranello.
A decadeago Max Mosley and Bernie
Ecclestone agreed F1need ed an insurance
policy when it came to enginesupply, and
such an approach would seem sensible. If the
car industry skids onan ICE-inducedcrisis,
F1 mustbe ab le to guarantee an ongoing
supply ofpower units. One solution could
require any manufacturerexiting F1 to
license their power unitsto an independent
supplier. Some willrememberthe Playlife,
Mecachrome, Supertecand Asiatech deals of
the past, though none t hrived.
Neverthless, while thelikesof Cosworth
can never contemplatean i ndependently
fundedreturn to F1, the prospect ofa
Renault orHondaexitingF1 only to license
their designs in ret urn for a percentage of
future profits seemslike an elegantand
much-neededsolution in uncertaintimes.
One thateven an accountant mightlike. PICTURE:MARK SUTTON;ILLUSTRATION:BENJAMINWACHENJEMARK
GALLAGHER
@_markgallagher
facebook.com/f1racingmagCosworth’s DFV engine wasthe mainstay of
many F1teams in the ‘70 and early ‘80s but no
such ‘insurancepolicy’ power unitexists today