Hit By Economic Crisis FIA Approves Cost-Cutting Measures

Cost-Cutting Measures Get Approved By The FIA

Cost-Cutting Measures Get Approved By The FIA


After the most extravagant phase in its history, when it burnt up hundreds of millions of pounds a year, Formula One took its “reality pill” yesterday as a raft of cost-cutting measures were approved by the FIA that are designed to slash team operating budgets by a third next year and even more in the years after.

With the ghost of Honda lurking at the feast and with the imposing figure of Max Mosley, the president of the FIA, to the fore, a sport that is famous for making big promises and then failing to deliver, finally produced the goods in Monte Carlo.

Among key changes given the go-ahead by the FIA’s rule-making body, the World Motor Sport Council, are a 50 per cent reduction in the price that independent teams will pay for their engines next season and a limit of eight engines per driver, a complete ban on mid-season testing, restrictions on wind-tunnel usage, agreed annual factory closures and, from 2010, a ban on refuelling during racing.

A notable feature of what was being seen as a turning point towards a more financially realistic future was that Bernie Ecclestone, who dominates all things Formula One as the sport’s commercial rights-holder, was almost invisible in this process.

Before the FIA announcement Friday, Luca di Montezemolo, the chairman of the Formula One Teams Association, which negotiated the changes with Mosley, issued a statement lauding the talks. He said they had been made “with Formula One’s DNA in mind - made of technology and sportiness.”

“They will enable us to drastically cut costs as of the upcoming season to have a complete new Formula One in the year 2012,” Montezemolo added, “distinguishing itself by an innovative spirit and great attention as far as the environment is concerned, but on economic levels as in the ‘90s.”

The FIA said its World Motor Sport Council agreed Friday at a meeting in Monaco to the measures. For 2009 they include:

• A doubling of engine life, with each driver limited to a maximum of eight engines over the season. Each engine must now be used for at least three races, compared to the previous two. Teams will also be allowed four engines for testing. Engines will be limited to 18,000 revolutions per minute.

• Cheaper engines for independent teams, costing about half as much as in 2008.

• During the season, teams will only be able to test their cars at Grand Prix weekends during scheduled practices.

• Limits on the use of wind tunnels.

• Team’s factories to close for six weeks per year.

• Reduced manpower for teams during race weekends.

Testing

• No in-season testing except during race weekend during scheduled practice.

Aerodynamic research

• No wind tunnel exceeding 60% scale and 50 metres/sec to be used after 1 January 2009.

• A formula to balance wind tunnel-based research against CFD research, if agreed between the teams, will be proposed to the FIA.

Factory activity

• Factory closures for six weeks per year, to accord with local laws.

Race weekend

• Manpower to be reduced by means of a number of measures, including sharing information on tyres and fuel to eliminate the need for “spotters”.

Sporting spectacle

• Market research is being conducted to gauge the public reaction to a number of new ideas, including possible changes to qualifying and a proposal for the substitution of medals for points for the drivers. Proposals will be submitted to the FIA when the results of the market research are known.

Note: It is estimated that these changes for 2009 will save the manufacturer teams approximately 30% of their budgets compared to 2008, while the savings for independent teams will be even greater.

2010

Power train

• Engines will be available to the independent teams for less than €5 million per team per season. These will either come from an independent supplier or be supplied by the manufacturer teams backed by guarantees of continuity. If an independent supplier, the deal will be signed no later than 20 December 2008.

• This same engine will continue to be used in 2011 and 2012 (thus no new engine for 2011).

• Subject to confirmation of practicability, the same transmission will be used by all teams.

Chassis

• A list of all elements of the chassis will be prepared and a decision taken in respect of each element as to whether or not it will remain a performance differentiator (competitive element).

• Some elements which remain performance differentiators will be homologated for the season.

• Some elements will remain performance differentiators, but use inexpensive materials.

• Elements which are not performance differentiators will be prescriptive and be obtained or manufactured in the most economical possible way.

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