F1 Car manufacturers at current recession – Status


The credit crisis across the world are impacting car manufacturers too. The domino effect of the crisis has reached car makers with the impact sounding all across the globe. American big 3 (Chrysler, GM and Ford) are standing with cap in hand to ask for a federal loan. French Government recently provided much needed cash to carmakers. Everywhere across the world car sales are dwindling.

Consumers are hearing bad news about higher prices of goods, reduced access to credit, less job security, negative equity and dwindling savings. Against this background, the option of splashing out on new wheels has gone out the window. Also, the credit has also dried upconsumers have been unable to buy cars, even if they wanted to.

F1 teams : Status

With the announcement of Honda last week to leave the sport can the remaining teams survive these hard times.

BMW Sauber:  BMW took a major hit in the United States last month with its sales tumbling 26.7%, with the 11-month annual sales down by around 6.8%. However Mini sales were up by 31% and Rolls Royce were up by 29%. The F1 team however seems to be secure with recent announcements from top order of the team.

Force India: Vijay Mallya’s outfit is safe it seems right now. With recent team changes and deal with Mclaren the team is sure to race next year

Ferrari:  The sales were down by 8% last month but Ferrari stands for F1. It has the largest fanbase across the globe and it will running F1 for years to come

Mclaren: Mercedes-Benz has suffered similar disasters in the United States with sales down 30% but overall 11-month sales only 1.2% under last year. Mclaren F1 team has a strong core of sponsors and the team is very secure for now

Red Bull and Toro Rosso: Dietrich Mateschmidt has recently bought back full stake of Toro Rosso and wants to penetrate the Asian markets. F1 provides him a perfect platform to market his company. Safe for 2009

Renault: Times are hard at Renault but is boosted by the French Govt. package. Also, with Fernando Alonso as their leading driver they can expect a lot of sponsor backing. I expect them to drive 2009 season

Toyota: Toyota  faced a drop in US sales of 34% in November. As Honda’s sale dwinded so is Toyota’s. Though the top management of Toyota denied any rumours of exit but a large perception is that Toyota are in F1 because of their rivals Honda. But with now Honda no more in sport will Toyota stay? I expect Toyota will race for a couple of more seasons as they would like to prove the above perceptions wrong.

Williams: A largely private enterprise of Sir Frank Williams for pure passion. They don’t have any billionaire backing. They look most vulnerable now. Also, they had big losses in 2007.

[Data source: Grandprix.com, Economist]

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2 Comments

  1. […] Force India: Vijay Mallya’s outfit is safe it seems right now. With recent team changes and deal with Mclaren the team is sure to race next year. Ferrari: The sales were down by 8% last month but Ferrari stands for F1. …[Continue Reading] […]

  2. […] car?: Car sales further tumble! The recession is hurting the car sales deeply. We thought the last data was worst but the recent data is more […]


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