Cost of F1

Well f1 helps develop technology for their cars also

And remember, ferrari always wanted to go racing!

 

Maybe I'm too romantic and backwards-looking - but without the racing, the existence of the road cars don't make sense to me. Their purpose used to be purely to finance the racing activities, and driving them is supposed to make people inside and outside of the car dream of the great history and achievements on track, paired with great technology - even if you are driving "only" on a beautiful small countryside road. Everyone's different views fully acceptable, so not starting a fight here - but for me personally that spirit is still alive, and the essence of being a "Ferrarista". (And I'm writing this as a - VERY minor - shareholder of Ferrari...).

 

Probably at some point in your life your parents told you to stop wasting time and do something more profitable. But, for good or for bad, you did what you wanted to do.

Anyway, for the big teams the cost is much smaller, because of the money from Liberty and the sponsors.

 

Many would consider that proposition a heresy.

 

They’re just spending or recycling OPM (other people’s money), money from F1 and sponsors and not their own. So no savings to be had if they quit—that money would just disappear.

 

Many would, yes.

 

^^^ This exactly ^^^

And as others have already mentioned, Ferrari is first and foremost a racing team. Road cars were produced to help fund the racing.

 

But that contradicts ingegnere's post #6 which claims that Ferrari doesn't use its own money to go racing.

"They’re just spending or recycling OPM (other people’s money), money from F1 and sponsors and not their own."

 

What? Over the history of the Ferrari racing team which started in 1929? Sorry, but it contradicts nothing, historically speaking.

You don't seem to comprehend that things change and things evolve.

 

That was true when Ferrari started, and even up to the 70s, perhaps, then gradually less.

In recent years, Scuderia Ferrari has been self-sufficient budget wise and not relying on Ferrari SA.

SF gets its money from Liberty, (+ the famous historical fees), from the many sponsors (they queue up!), from merchandise sale , etc ...

 

Get rid of the most valuable marketing and development asset the have and spend whatever amounts Ferrari SPA puts in on:

- Further development of products that are in many ways leaders in their industry
- Lower prices on items that are so scarce that customers wait years to buy them
- Pay the same employees of a company that regularly is rated one of Italy's best employers more

I think these fine ideas should be immediately presented to upper management. Better yet lets just give all that money to the poor and lynch anyone who would own such an extravagance.

 

They should liquidate everything, fire everyone and just put the money in a bank savings account.

 

That’s just my understanding of the situation so don’t take my word on it as I may be wrong.

 

So to be clear:
When Enzo Ferrari started racing in the late 20's under the banner Scuderia Ferrari, he was the team manager and part owner. Didi Trossi, was the backer, and President. Trossi eventually got out, and Ferrari went on his own, with still backing from other drivers. the Scuderia - was truly a stable, where you could bring your own car, and Ferrari would look after it, transport it, prepare it, etc.. for racing. finally when he took over the Alfa works cars on behalf of Alfa, Ferrari was paid on his own as team owner / president. The modern equivalent is Corse Clienti today. by the mid 30's the "silent partners" were out. (other than Trossi I cant remember them all ).

When racing stopped in 1940, Ferrari used his garage to make machine tools, but it was not like flipping a switch. he was under the non compete from Alfa, and set up AAV Auto Avio Construzioni, to fix old cars, maintain racing cars etc. After the war AAV started to really ramp up, and then when his naming non compete expired he was able to go under his own name. Even then he was only focused on racing cars. However as his first wins started to come in, he knew building more racing cars and selling them so he could run them for the wealthy owners was the model. Only after they won the Mille miglia and Le Mans did he start to make "road cars". In those days - early 50's the cars were dual purpose. that is where the " I make road cars to fund racing" came from.

Today, F-1 is wholly owned by Ferrari SPA, and there is some subsidy that comes from the parent company. From 1950 to 1970, Enzo Ferrari funded the racing teams from his cash flow of the main factory. Once FIAT bought into the business, they funded a stipend every year ( equating to Enzo's take on the manufacturing of road cars ) Enzo also had fees coming in from Agip, and a number of smaller adverts. In 1972, FIAT made a final anuity settlement with Ferrari which made him very wealthy, and the thought is that Angelli thought that Enzo was not going to live much longer... so his annuity increase would only last a year or so, painfully to FIAT he lived 20 more years. that stipend along with adding the FIAT logo to the race cars allowed Enzo to part from the mfg. side of SPA, and set up Ferrari Reparto Corse in 1979. that stayed until his death which triggered the FIAT buy of the rest of the shares.

While most here on FChat think if Ferrari stopped racing it would harm the road cars... I think the opposite. most people don't really realize that Ferrari races, I would say that 1/2 of new owners have no idea or care about the racing ... they just see Ferrari as an exclusive Luxury brand Gucci and Hermes - made tack and saddles and riding gear.... ( you can still get that ) but today they are known for fashion and purses... completely independent of horse furniture.

 

Road cars quit funding F1 cars in the mid-to-late 1970s, after this it was sponsors.

 

Right. I made it quite clear I was speaking historically.

 

For a long time Philip Morris used to select and control all the sponsorship at Ferrari, and pay $100M minimum to the Scuderia budget.
That's how Arrivabene became prominent in the team's decisions and later principal; for years he had been in the corridors of Maranello.
The irony is that, before knocking at Ferrari's door, Philip Morris apparently proposed the same sort of deal to Ron Dennis, when McLaren and Marlboro were associated, and he refused ithe interference!

 

That’s right. And Maurizio was not just in the corridors, he was also in the garage sometimes:

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