F1 top news

FIA study shows F1 costs could be halved – report

FIA-Logo
A study commissioned by the FIA reportedly shows that costs in formula one could be halved without hurting the ‘show’.

With Caterham and Marussia ailing and even better-funded midfielders struggling financially, it emerged on Tuesday that New York-based McKinsey and Company, a multinational consulting firm, recently examined the finances of nine F1 teams at the behest of the governing body.

In its findings, revealed by Germany’s Auto Motor und Sport, McKinsey has proposed new cost-cutting measures that could help teams like Force India, Sauber and Lotus – with budgets in the range of $120-$200 million – to survive and thrive.

Focusing on a $120m per year team, McKinsey reportedly found that almost $30 million – a quarter – is spent on the engine alone, but that a 25 per cent cost reduction would be feasible.

The study also found that 35 per cent of the design and production process, 15 per cent of the grand prix activities and 20 per cent of testing costs could be slashed.

“Then teams like Sauber, Force India, Toro Rosso and Williams could be funded solely from the distributions from the commercial rights holder,” reported correspondent Michael Schmidt. (GMM)

Comments

ThisisF1.com is not affiliated with Formula 1, Formula One Management, Formula One Administration, Formula One Licensing BV, Formula One World Championship Ltd or any other organization or entity associated with the official Formula One governing organizations or their shareholders. Copyrighted material used under Fair Use/Fair Comment.

References
We could use the following leading F1 news sources for stories: SkyF1, BBC F1, Autosport, ESPN F1, FIA Media Center, MotorSport, JamesAllen and others leading authors blog.

All Rights Reserved © 2017 Prime Sport Media

To Top