[wrewsTear]

Apparently the French and other countries are looking to the EU for economic assistance for auto makers. Will the EU make a withdrawl from F1 and racing in general a condition of assistance?

[Discus]

Apparently the French and other countries are looking to the EU for economic assistance for auto makers. Will the EU make a withdrawl from F1 and racing in general a condition of assistance?

Where does that thinking stem from?

[quorceopporce]

Where does that thinking stem from?

I should imagine the idea that if these companies are so short of cash, how can they afford to be in F1? It's actually a very reasonable question.

[lierro]

I should imagine the idea that if these companies are so short of cash, how can they afford to be in F1? It's actually a very reasonable question.

Yep, you are right!

Renault, BMW better prove that their F1 activities are fully paid for by their sponsors.

Mercedes might say that McLaren is supporting the costs and Ferrari are not in a situation to ask for tax payer's money.

[wrewsTear]

Sorry, I forgot the link.

http://www.breitbart.com/article.php...cle=1&catnum=0

[wrewsTear]

Even if they prove that their sponsors cover the cost, the spectacle of wealth while asking for a hand out isn't going to play well with the public.

[quorceopporce]

Even if they prove that their sponsors cover the cost, the spectacle of wealth while asking for a hand out isn't going to play well with the public.

Exactly. Some people may decry the notion of corporate social responsibility as being meaningless, but suddenly it seems increasingly relevant.

[Wheldcobchoto]

Apparently the French and other countries are looking to the EU for economic assistance for auto makers. Will the EU make a withdrawl from F1 and racing in general a condition of assistance?

I don't think so.

F1 is going through a metamorphosis at the moment and both costs and the structure will be redressed.

I would think that the marketing benefit would be easily justified.

[quorceopporce]

I would think that the marketing benefit would be easily justified.

Hmmm. I bet that none of the manufacturers involved could actually justify it in terms of being able to present an actual return on their investment. It is impossible to quantify.

[wrewsTear]

I understand what you're saying but you've got Germany in F1 and France in F1. Thats 2 countries out of 27. Will 25 countries with non-automotive needs of a similar nature agree to contribute to the needs of 2, whose companies are participating in an expensive racing series?

[Wheldcobchoto]

I understand what you're saying but you've got Germany in F1 and France in F1. Thats 2 countries out of 27. Will 25 countries with non-automotive needs of a similar nature agree to contribute to the needs of 2, whose companies are participating in an expensive racing series?

Well, we have strong UK representation in F1 and I would argue Italy have a little team in the sport as well.

F1 generates considerable revenues and jobs in the EU as well.

[quorceopporce]

F1 generates considerable revenues and jobs in the EU as well.

But those revenues can never be calculated with much accuracy, and the numbers of jobs are, let's be honest, tiny.

[wrewsTear]

Well, we have strong UK representation in F1 and I would argue Italy have a little team in the sport as well.

F1 generates considerable revenues and jobs in the EU as well.

You both have strong representations, but not auto manufacturers involved with racing, except Ferrari and they probably still have their market.

[Discus]

I should imagine the idea that if these companies are so short of cash, how can they afford to be in F1? It's actually a very reasonable question.

Well, its a well known fact that teams see F1 as purely a marketing tool. They're not doing it for the love of the sport.

Surely its just common sense and sensible economics that if the cost of F1 outweighs the profits from being in F1, they'll pull out of their own accord.

Only reason I can see them pulling out is because its well known as marketing is one of the first departments to suffer when cut backs are needed.

If EU does decide to give manufacturers cash, unless it involves nationalisation - and the EU doesn't approve of F1, I can't see if affecting the manufacturers involvement in F1.

But if we look at the UK for example, F1 is a huge economic advantage, with the cluster of F1 teams, and the cluster of businesses which depend on those F1 teams for business.

Rest of the countries may well be against F1, but even then, the likelyhood is that they'd only enforce such a condition if the deal involved some kind of nationalisation.

[lierro]

Hmmm. I bet that none of the manufacturers involved could actually justify it in terms of being able to present an actual return on their investment. It is impossible to quantify.

That's pretty much how I see it. Not to mention that their sales have fallen so dramatically even with F1's alleged world wide exposure.

[quorceopporce]

That's pretty much how I see it. Not to mention that their sales have fallen so dramatically even with F1's alleged world wide exposure.

Yes, it's clearly a great publicity tool!

[Discus]

Yes, it's clearly a great publicity tool!

lol - I don't think anyone is suggesting that F1 is exempt from the global economic downturn.

I sense sarcasm in your post. Are you saying that F1 is not used as a marketing tool?

[quorceopporce]

lol - I don't think anyone is suggesting that F1 is exempt from the global economic downturn.

I sense sarcasm in your post. Are you saying that F1 is not used as a marketing tool?

I'm just agreeing with ioan that F1 has clearly done car manufacturers little good of late. You were right to sense the sarcasm.

[wrewsTear]

I have always disagreed with the need for manufacturers as team owners in F1 for this very reason. Honda got out based upon image more than anything else. I see no problem with manufacturers building engines or other pieces, but team ownership needs to be within the realm of the normally wealthy and foolish individual or partnership.

[Tactattcahhaw]

That's pretty much how I see it. Not to mention that their sales have fallen so dramatically even with F1's alleged world wide exposure.

The sales of all automotive OEM's have fallen globally. Being in or not being in F1 would have no affect on that macro event. But there may be a question of how much sales of involved OEM's have fallen versus the sales of noninvolved OEM's? I don't know the answer to that.