At what point does Fiat decide to pull the plug?

Ferrari hadn't won a Championship between 1984 and 1998 and nothing happened.

 

It wont be Fiat's decision

 

It's a cash cow still. Why pull the plug? Think of the millions of hats they sell alone...

 

on top of that, they barely put cash in (if any), because of their huge sponsors footing all the bills.

 

IMO Ferrari wastes an incredible amount of money on drivers contracts, terminations, etc. Look what drivers Red Bull has for a fraction of the cost.

 

Ferrari has to stay in racing because ferrari is racing . Ferrari whole image is around racing ldm is at fault for this train wreck because he has run the race team as his personal empire . What's sad is only a few teams have a proper budget if some of these teams had money ferrari wouldn't even make the points

 

Exactly - Ferrari at the same time gained tremendous market share at the same time.

Ferrari really have not been super competitive all the time. only in since 2000 have they been the power house ....

in the 50's they dominated and for short period in the late 70's ... but not by much. even in the 70's it was Lotus who was the dominant team... Ferrari usually was there collecting points.

I would suspect that the economic value of Ferrari racing far outweighs the actual showroom impact. However if F-1 ever cuts is subsidy to Ferrari I could see Fiat ( or Angelli family ) cutting back cash ... or even Selling more shares. however Ferrari not racing would be a real cut to their immage... and standing in Italy but you can never say never. should FCA implode... Ferrari are about the only valuable thing they have to sell off...

 

Ding! Ding! Ding!

All this talk of history is pointless because the future with an independent Ferrari beholden to shareholders will be absolutely nothing like the past. I highly doubt shareholders will permit 14 years of funneling money to no result.

 

Too late, they're selling it off now so that won't happen. If it's separate from FCA, it won't have to be sold if FCA bombs out.

 

When the shareholders are all the same people that currently own FCA, why do you presume it would be any different?

 

another stupid thread

 

When its your money as opposed to cooperate funds your opinion may change.

 

I don't think it would be a disaster to take a break from F1 and join WEC.

They would learn a great deal more that could make its way into their road cars and its not like they are desperate for the exposure F1 brings.

Tribes in the amazon know what Ferrari is. I honestly doubt they need F1 at this point.

 

Sports car racing over f1 come on that's like have a CFL tean and saying your in the NFL

 

+1

 

+1

 

There is a difference between FCA and Ferrari; you may want to back one, and not the other.

You have to see the figures first, and judge if Ferrari shares give a good dividends for the investment. Don't forget that most shares are owned by institutions like banks, insurance companies, pension funds, trusts, etc... that are not motor racing enthusiasts per se, but must provide a good return for their investment.

 

At the current level of expense Ferrari's profits are the envy of the industry.
Why anyone would monkey with that is beyond me.

F1 is in Ferrari's genetic code.

 

Wrong, the largest shareholder of fca is the Agnelli/Elkann family (30%), hence they will also be the largest shareholder in Ferrari as the spinoff is going to only sell 20% of the company publically with the rest going to existing fca share holders proportionally to what they own in fiat. All of the people that currently have a say in what fiat does (and hence ferrari),ie the Elkanns, will have a say in what ferrari does as they will still be the biggest shareholder at 25%.

It basically gives them a guaranteed dividend even if fca caps out.

 

Forget about F1, what are the dividends offered by Ferrari shares, compared to the same amount invested in other business; that's what investors look at!

If the profits are constantly re-invested in the business to substain motor racing, the shareholders will not be happy for ever!

 

Ferrari's present way of operating makes little sense for investors.
Which is why this reorg will be the end of Ferrari sooner or later.
And we'll all be poorer.

 

If the investors thought it was a bad idea, they would have already put a stop to it as they are the same investors that own fca and hence are currently running ferrari. Unless you think someone is going to buy up the whole 20% offered and make a play at buying out one of the other current fca owners, the Elkanns will be calling the shots as they are now.

 

Because the fiscal realities of an independent Ferrari will be different? If you wish to see Ferrari survive I'd hope you wish for changes. I don't see the current F1 Fiscal situation - with massive cash payments to Ferrari and other failing teams being sustainable. Nor do I see an independent Ferrari being able to maintain exclusivity, high caliber model development, and still sinking millions into a money pit named F1. You tinker with successful things so you stay successful.

 

How much of Ferrari's actual money is currently being sunk into F1 when all sponsorship and media payments are accounted for?