At what point does Fiat decide to pull the plug?

Who cares when they profit a quarter of a billion dollars? Don't forget that they get a massive amount of $$ from cvc for just participating.

 

Making profit and adding value is what makes sense to investors. That's how it has been for all the past and present owners of Ferrari and always will be for future owners of Ferrari.

 

My point exactly.

New owners, or shareholders can't have too much of a problem with Ferrari's participation in a sport that they actually turn a profit on as a bottom line.

If the money from CVC, sponsors and all other F1 related sources cover all the expense of being in the sport the only way they are leaving is if they are completely opposed to the technology, engines, leadership and future direction of the sport.

 

The current investment market has little patience. Its focused on ROI, growth, asset maximization, and cost cutting. Measured quarterly.

This has been discussed extensively elsewhere. Fiat is selling the Crown Jewels for quick cash and Ferrari may end up with a mountain of debt. The old way of operating will no longer be viable.

 

Agree with that. I think people who say Ferrari should quit Formula 1 don't understand what Ferrari is.

It will be fascinating if Ferrari actually does become a standalone public company. There will be a lot more visibility into its financials and we will all know much more about whether and how racing earns its cost of capital. If it doesn't, something will have to give.

 

Depending how things shake out in F1 Ferrari may be looking at a big reduction in their annual $100 mil. stipend from the sport. Looks like the squeeze may be on from both directions.

 

Nail hit.

I actually think Ferrari is one of the teams, if not the only team, that makes a profit from participating in F1. Results don't affect Ferrari's sponsorship position unlike other teams.
Pete

 

Also do results matter to sales? Clearly not as more than just a few Ferrari owners are not F1 fans and bad results on the track clearly do not affect sales. If Ferrari left F1 Id still be more than a fan of the road cars. I cared little about Lotus' results when I was a Lotus road car fanatic.

F1 is lost and without direction. So a few major teams and customer cars. The DTM-ization of F1 begins. The world continues without F1 no problem. Same with Ferrari as other competition options exist if they chose to continue racing if they 'need' it at all.

 

Would be a shame though wouldn't it?
Pete

 

Yes it would be. I do think things are changing in Motorsport and F1 of course. I enjoy F1 and I do hope they can find an accomodation to bring the sport back to a level of competition in line with its earlier base.

 

Ferrari has never made money in f1 till micheal can around there had marlboro giving them 200 million a year and 200 million more in hats and t shirts sales at least . F1 is all the advertising that ferrari does and they where making money on it . This Impo is way fiat is blowing up the race team because now they are going to have to put in money like pre schumi days that money has to come out of road car development . There was talk in the early 2000s about spinning of ferrari but banker brothers passed before it could happen they were the only people that could have sold ferrari away from fiat . With out Obama giving them dodge fiat wouldn't make it with dodge fiat has a dealer network . I would love to see ferrari hit the market it has up side for growth 20% more road cars and it has the ability with right race team manager to make money again in f1

 

...and Apple used to be two hippy's selling computers out of a garage to their friends so they didn't have to get proper jobs.