F1: Ferrari’s (NYSE:RACE) CEO ‘Encouraged’ By Coming Engine Discussions
Speaking to analysts in a post Q-1 results conference call, Sergio Marchionne said he sees ‘meaningful discussions’ on the F1 engine issue, and hoped for a full resolution by the end of the year, if we cannot then Ferrari will pull out.
“Probably the biggest indication has been the recognition of the fact that the engine regulations need to reflect sort of the nature of the sport. And we cannot really dumb down engine development just to accommodate new entries, right?
“So the stuff that’s on the table now is potentially workable as a system. The economics are not,” he added. “I think that’s something that we need to go back to Liberty with.”
They also want engines to remain hybrid and road relevant, with the rules making the sport attractive for any new entrants
Ferrari, the oldest and most successful team in the Tier 1 motorsport, receive special payments to reflect their status.
Critics say the current V6 turbo hybrid engines are too complicated, quiet and costly and need to be simpler, cheaper and louder.
Mr. Marchionne has warned in the past against standardization, which he has compared to the US stock car racing series NASCAR.
“I think we now have enough of a basis to try start having meaningful discussions. And hopefully, we’ll get it all resolved by the end of this year one way or the other,” said the chairman.
Marchionne said budget cap discussions were “more encompassing in nature than just dealing with engine development” but he could see value in removing some of the costs associated with aerodynamic development.
“I think we need to continue to work with Liberty with the commercial rights holders and with the FIA to try and bring about a sensible equilibrium. If we cannot, as I said before, we will just pull out.
“But we not not there today. I think we owe the sport a phenomenal effort to try and bring about closure of these items. We will try and get that done before the end of this year.”
|NYSE:RACE||137.33||4 May 2018||6.34||134.92||137.45||134.28||1,201,600|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Neutral (0.21)||Bullish (0.25)||Bullish (0.29)||Neutral (0.10)|
Have a terrific weekend