FORUMula1.com

[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.

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?

Geez, did you read my post? I just said that profit is what's left AFTER you paid for everything, that includes running the shop and R&D!

[darwin dali]

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".

Profit of 266 million - is it $ or Euros (you listed both)?
At any rate, that's about half of the F1 team's yearly budget, the other half is easily covered by the sponsors.

Thanks for the profit number, Gregg! (the revenue is in line with what I posted above for last year)

[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?

Geez, did you read my post? I just said that profit is what's left AFTER you paid for everything, that includes running the shop and R&D!

so youre seriously suggesting there would be enough profit to run the Ferrari F1 team? get real that would not contribute much at all! again that would leave further R&D very restricted for Ferrari road car department if all their efforts are going into the F1 team with no help from parent company FIAT.....

[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.

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?

Geez, did you read my post? I just said that profit is what's left AFTER you paid for everything, that includes running the shop and R&D!

so youre seriously suggesting there would be enough profit to run the Ferrari F1 team? get real that would not contribute much at all! again that would leave further R&D very restricted for Ferrari road car department if all their efforts are going into the F1 team with no help from parent company FIAT.....

Gregg's number of 266 million (probably Euros) is more than half the F1 team's budget (in $$ it would be about half), so there - it pays substantially for the F1 team, the rest is covered by Marlboro et al.
As stated above - R&D is already included in the operational costs and doesn't figure negatively in the profit number. Plus, Ferrari could make the case that any R&D made in the car dept. AND in the F1 team is of a synergistic nature, e.g., materials science that they do, metallurgy, etc. So, these R&D costs could be shared between the two departments.

[texasmr2]

Yes it is in euro's sorry about the $ sign it's a bad habit.

266 million euro's at the current exchange rate is $419,673,942.55 USD.

[bud]

Yes it is in euro's sorry about the $ sign it's a bad habit.

266 million euro's at the current exchange rate is $419,673,942.55 USD.

thats an impressive profit margin

[AKR]

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.

In effect then the claim that Ferrari gets no funding from Fiat is a lie. Here is why. As the claim states, The Ferrari F1 team is funded by the profit from the road cars and also the sponsors. Fiat is one of the sponsors therefore Fiat gives money to Ferrari. Very simple isn't it and very shifty.

[darwin dali]

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.

In effect then the claim that Ferrari gets no funding from Fiat is a lie. Here is why. As the claim states, The Ferrari F1 team is funded by the profit from the road cars and also the sponsors. Fiat is one of the sponsors therefore Fiat gives money to Ferrari. Very simple isn't it and very shifty.

That's exactly it! He said that FIAT does NOT give any money to Ferrari, sponsor or not. They OWN Ferrari, but that does not mean that they subsidize Ferrari. The FIAT logo is simply an acknowledgment that Ferrari is part of the FIAT group of companies (and might help increase FIAT car sales in Italy and Europe).

[darwin dali]

Yes it is in euro's sorry about the $ sign it's a bad habit.

266 million euro's at the current exchange rate is $419,673,942.55 USD.

thats an impressive profit margin

...and almost enough to fund the whole F1 team. Add the sponsor monies and you have yourself a well-oiled Scuderia.