FORUMula1.com - F1 Forum

[McLaren Fan]

I can't help but think that di Montezemolo is a being a little bit disingenuous when he says Scuderia Ferrari are funded by its road-car partner company. When di Montezemolo took over FIAT, he poured a hell of a lot of money into Scuderia Ferrari, and they still do. On top of that, Ferrari's big sponsors, particularly Marlboro pump tens of millions into the team every year. When you add up all those things, the road-car division at Maranello contributes token gestures to the Scuderia.

[Martin]

So, if Ferrari does not get a penny from Fiat, why do the cars carry the FIAT logo?

[McLaren Fan]

So, if Ferrari does not get a penny from Fiat, why do the cars carry the FIAT logo?

Ferrari are owned by FIAT, so even if Ferrari were not being funded by them, having their logo on them would still be expected.

[Jensonb]

I can't help but think that di Montezemolo is a being a little bit disingenuous when he says Scuderia Ferrari are funded by its road-car partner company. When di Montezemolo took over FIAT, he poured a hell of a lot of money into Scuderia Ferrari, and they still do. On top of that, Ferrari's big sponsors, particularly Marlboro pump tens of millions into the team every year. When you add up all those things, the road-car division at Maranello contributes token gestures to the Scuderia.

They did say sponsors. Ferrari road cars and sponsors.

[bud]

if the Ferrari road car profits fund the F1 team what funds the road car department? FIAT?

[McLaren Fan]

if the Ferrari road car profits fund the F1 team what funds the road car department? FIAT?

Correct. Whatever way you choose to look at it, the money is coming from FIAT, which is a giant company, not just strong in the automotive world, but also having a reasonable stake in things like aviation. FIAT's revenue last year was €8.529 billion, and their profit was also pretty healthy, making €2.054 billion. In the current Formula One climate, there is no shame in admitting that you get a good handshake from a large (usually automotive) parent company.

[Jensonb]

if the Ferrari road car profits fund the F1 team what funds the road car department? FIAT?

Indeed. It was a pretty disingenuous remark.

[f1ea]

Ferrari is owned by FIAT but their budgets are separate and they work as different companies. i.e. FIAT could go bankrupt, and Ferrari could still exist and vice versa. Alfa Romeo is also owned by the FIAT group. So, that FIAT logo in the F1 cars works more or less like a sponsor... like Shell and Marlboro and so on.

[al4x]

renault are a huge company, but the money that goes into f1 by ferrari-fiat is very much greater than renault

with the budget cap ferrari could well be run by sponsors,

[Mikep99]

I also think there is a bit of PR in Montys statement. But this still does not diminish what Ferrari has achieved, which some find glee in trying to explain away & discredit.
All I can say is Enzo would be a happy & proud man.

[darwin dali]

if the Ferrari road car profits fund the F1 team what funds the road car department? FIAT?

Profits are leftovers after deducting all the costs. So, if the Ferrari car dept. is profitable (after everything is paid for), the profit can then be used to develop the Ferrari F1 car. There is no need for the Ferrari car dept. to accumulate profits and put them in a bank account or pay them out to shareholders They can just as easily make the point that a continuous increase of the share price is enough 'repayment' to the shareholders and that re-investing the profits into the F1 team is the best way to ensure the stocks go up in value.

[darwin dali]

When di Montezemolo took over FIAT, he poured a hell of a lot of money into Scuderia Ferrari, and they still do.

How do YOU know that?

On top of that, Ferrari's big sponsors, particularly Marlboro pump tens of millions into the team every year. When you add up all those things, the road-car division at Maranello contributes token gestures to the Scuderia.

Same for Renault, don't you think? They're mostly supported by sponsor money as well, just at a lower $$ level than Ferrari. So, if Ferrari can secure top sponsors that pay top $$$, then this is also an achievement that Ferrari deserves credit for rather than FIAT.

[texasmr2]

From FORZA's '08 2008 issue:

'The Prancing Horse saw it's '07 revenue rise to $1.69 billion euro's which is over 15% from '06. Profit rose to $266 million euro's, a whopping 45% increase over the previous year's figure's - this despite a 29% increase in investments ( future models, new facilities, etc.) and research and developement, as well as a weak dollar, the currency of 30% of Ferrari sales".

[McLaren Fan]

When di Montezemolo took over FIAT, he poured a hell of a lot of money into Scuderia Ferrari, and they still do.

How do YOU know that?

On top of that, Ferrari's big sponsors, particularly Marlboro pump tens of millions into the team every year. When you add up all those things, the road-car division at Maranello contributes token gestures to the Scuderia.

Same for Renault, don't you think? They're mostly supported by sponsor money as well, just at a lower $$ level than Ferrari. So, if Ferrari can secure top sponsors that pay top $$$, then this is also an achievement that Ferrari deserves credit for rather than FIAT.

Of course Ferrari deserves credit for that. I never said they didn't. Montezemolo is a shrewd man and has done a great job at Ferrari, having cleared their debts, made the organisation profitable, got in the right people, and stamped out the internal political problems. That said, I still think it's a bit disingenuous a claim that FIAT don't look after Ferrari and never have done.

[bud]

if the Ferrari road car profits fund the F1 team what funds the road car department? FIAT?

Profits are leftovers after deducting all the costs. So, if the Ferrari car dept. is profitable (after everything is paid for), the profit can then be used to develop the Ferrari F1 car. There is no need for the Ferrari car dept. to accumulate profits and put them in a bank account or pay them out to shareholders They can just as easily make the point that a continuous increase of the share price is enough 'repayment' to the shareholders and that re-investing the profits into the F1 team is the best way to ensure the stocks go up in value.

where does the money come from to run the car department if the profits from the car department go towards running the F1 team?
the design, R&D employees etc etc all dont work for free to create a range of road cars.......
surely you can see the equation here?