Honda Rescued!

[The Rumble Strip 0]

I take the point but does Ron Dennis, for example, have or worry about his personality.

For me, his ethic is in the racing which is how it should be.

[dribbler 6]

I take the point but does Ron Dennis, for example, have or worry about his personality.

For me, his ethic is in the racing which is how it should be.

Why is it relevant whether Ron or any other team boss worries about their personality? I'm making the point that charisma and strength of character is important for effective leadership.

For the record, in my view, Ron Dennis has more character in his left ear than the whole of Nick Fry.

[HandyNZL 1]

I like the idea of a Schumacher-Ferrari entrant...Ralf could put a big willy logo on the nose cone, even! And surely Michael would get all manner of sponsors behind him.

But then, not too many successful drivers make for successful teams...usually it's the opposite - terrible drivers (or mechanics) start great teams.

[Insider 0]

I think they're waiting on someone, that's for sure......................... My bet? A Greek bearing gifts with the initials AK. I'll say no more.

I cannot prove this and you will have to take my word, that Ross sought out and smoothed the feathers of a certain Greek millionaire and brought him back inside the deal. The Achilleas Kallakis story was all over the junk press on Saturday but I feel there is credibility and substance behind it. Kallakis would have hardly gone public with his criticism of Fry if he were not a serious player. The crash.net story below pretty much lines up with the research I have done on this guy.

Though he has no prior motorsport experience per se, Kallakis was one of the bidders for Scuderia Toro Rosso when it was officially put up for sale just after the start of the 2008 campaign. Whilst that bid was ultimately unsuccessful, it did enable the 40-year-old to put together a well thought-out business plan and sponsorship package comprising financial backing from two sponsors who have never been involved in the sport before - but who are ready and able to invest as much as

[Medilloni 6]

..............that Ross sought out and smoothed the feathers of a certain Greek millionaire and brought him back inside the deal. .............

I'd guess that if Brawn is involved in discussions they'll have more credence than Fry winging it.

An interesting view of the management buy-out theory here too.... http://www.grandprix.com/ns/ns21092.html

JANUARY 12, 2009

Why a management buyout makes sense at Honda

The suggestion that there could be a management buyout at Honda Racing F1 is a very logical one and probably the easiest solution to Honda's problem. Closing down the team would be a major blow to Honda's image. This, remember, is one of the largest companies in the world and it enjoys a good reputation as behaving in a responsible manner. Closing down the F1 team and putting a large number of people out of work would not be good for Honda.

That route is also costly. Shutting down the team would not only wipe out the investment made, but would also cost in the region of $100m. It would be wiser to spend the same money to support a management buyout headed by Nick Fry and Ross Brawn. At 52 and 54 Fry and Brawn have plenty of time to make a success of the business and both recognise that this is a huge opportunity as the team is basically being given away.

Management buyouts are useful for companies that need to be sold in a hurry. There is no real need for a due diligence process because the buyers know the company intimately and there is no need for any warranties, which is good for the seller. MBOs often occur when a business has been scheduled for closure and the managers want to retain their roles, believing that the company has good potential in the future. They are also used when the management knows that new buyers might bring in new management teams.

The idea of a vendor-funded MBO makes a lot of sense. This means that the purchase of the team could be paid for in the years ahead with money from the profits generated by the company. This would give Honda some return on its investment if the team is able to survive. This could also allow for Honda to have the possibility to buy the team back in the future, which would also help to protect the investment that has been made - and help the top management in Japan justify its actions.

The second option would be to go to private equity investors, who will put up the money to run the team in exchange for shares. Fry and Brawn may well be working on a combination of the two routes - and this may tie in with rumours that Michael Schumacher is talking about an involvement in the team, although he has denied that he has any interest. Schumacher has plenty of money to invest and has great faith in Ross Brawn, the two having worked together for the whole of his F1 career. He may wish to be a silent partner in such a deal as he has never really shown any interest in wanting to become a team principal. This is not necessarily that but rather an investment that could bring big returns. A combination of Honda cash and seed money from Schumacher could launch the new team on its way, giving them time to find more funding later when the global financial situation becomes less daunting. There are risks involved for all concerned but it is a great opportunity.

The primary aim at the moment is to sort out the ownership as quickly as possible and get on with the 2009 programme. A decision is needed very soon on engines and the choice appears to be between Ferrari and Mercedes-Benz. Since the agreements made between the F1 teams and the FIA in December, the F1 engine world has become a buyer's market. The big manufacturers all have large engine departments, but with even tighter freezing of the engine regulations and a ban on testing during the F1 season, there is going to be a lot of excess production capacity at the factories so companies may be actively seeking to extend their engine supply deals to avoid lay-offs.

[Jem of the Shire 0]

I'm not sure where the hatred for Fry comes from.

I think its just his face, and the sound of his voice

[Medilloni 6]

..............in my view, Ron Dennis has more character in his left ear than the hole of Nick Fry.

No need for that Steve!

[Medilloni 6]

Loads of articles saying Ferrari are not in a position to provide engines, and that the new supplier will be a 'big surprise'. Well, the way events are unfolding I wouldn't be surprised if they were Rotax rotary valve engines ffs.

Mercedes. Or BMW. Or mebe Toyota, how embarrassing would that be for Honduh

[Quiet One 15]

Loads of articles saying Ferrari are not in a position to provide engines, and that the new supplier will be a 'big surprise'. Well, the way events are unfolding I wouldn't be surprised if they were Rotax rotary valve engines ffs.

Mercedes. Or BMW. Or mebe Toyota, how embarrassing would that be for Honduh

...until Honduh finishes ahead of Toyota in the WCC using Toyota engines...

[Medilloni 6]

[quote name='Quiet One' post='280396' date='Jan 12 2009, 03:06 PM']...until Honduh finishes ahead of Toyota in the WCC using Toyota engines...[/quote]




A slow brain day for me, but surely Honduh wouldn't want any exposure on the car next year. Would they? I mean 'Team Brackley Powered by Honda Millions' isn't very catchy is it?

Nah, knowing Fry it'll be 'Team Fry'[s]ing Pan into the Fire[/s]

[The Rumble Strip 0]

Exactly.

My point is that Ron only comes across to me as having a corporate personality, not that there is anything wrong with that. Fry comes across as having little personality, I'll agree but I don

[dribbler 6]

No need for that Steve!

Loads of articles saying Ferrari are not in a position to provide engines, and that the new supplier will be a 'big surprise'. Well, the way events are unfolding I wouldn't be surprised if they were Rotax rotary valve engines ffs.

Mercedes. Or BMW. Or mebe Toyota, how embarrassing would that be for Honduh

Big surprises, secrets, soon to be done deals....anyone else getting bored of this bloody shenanigans? Somebody just hurry up and buy the team, chuck an engine in the back and get on with it.

Exactly.

My point is that Ron only comes across to me as having a corporate personality, not that there is anything wrong with that. Fry comes across as having little personality, I'll agree but I don

[Insider 0]

I have been chasing this engine story all day. I am, for once, completely lost for words. All I can say, is that at this late stage, without an engine deal signed and sealed, the team are not going racing this year - that's the big surprise!

[shampion 0]

I have been chasing this engine story all day. I am, for once, completely lost for words. All I can say, is that at this late stage, without an engine deal signed and sealed, the team are not going racing this year - that's the big surprise!

Shouldn't there be a team owner established first before signing any engine deal?

Maybe that is why Stefano Domenicali said .... "As far as delivering engines to Honda is concerned this possibility is almost zero at the moment"

[Insider 0]

Shouldn't there be a team owner established first before signing any engine deal?

Maybe that is why Stefano Domenicali said .... "As far as delivering engines to Honda is concerned this possibility is almost zero at the moment"

Of course, you're right but the original question from Brawn was, 'if we get a new owner will you supply engines?' The answer, I believe was, 'No problem'. The problem appears to be Ferrari's ability to supply, regardless of whether the team has a new owner or not. It might as well be a Proton for all the use it's going to be at this late stage.

[shampion 0]

Of course, you're right but the original question from Brawn was, 'if we get a new owner will you supply engines?' The answer, I believe was, 'No problem'. The problem appears to be Ferrari's ability to supply, regardless of whether the team has a new owner or not. It might as well be a Proton for all the use it's going to be at this late stage.

I have no doubt in Ferrari's ability to provide engines to another team ... if they want too.

[The Rumble Strip 0]

To be fair to Ferrari, no new owner is in place though.

[shampion 0]

To be fair to Ferrari, no new owner is in place though.

My point ...exactly

[Max Mosley 2]

Wow. And I thought this thread couldn't get much more speculative and circular.

[mikathegreat2 2]

Loads of articles saying Ferrari are not in a position to provide engines, and that the new supplier will be a 'big surprise'. Well, the way events are unfolding I wouldn't be surprised if they were Rotax rotary valve engines ffs.

Mercedes. Or BMW. Or mebe Toyota, how embarrassing would that be for Honduh

Cosworth? Alfa Romeo?? Dacia???? (oh wait they're owned by Renault)

[Rainmaster 7]

I'll provide the engines. There, problem solved.

[Quiet One 15]

I'll provide the engines. There, problem solved.

I expected nothing less from you!

[Rainmaster 7]

I expected nothing less from you!

Sometimes I think I could solve the world's problems in a day, if I could be arsed that is.

[Grabthaw the Hammerslayer 4]

Wow. And I thought this thread couldn't get much more speculative and circular.

Could get more circular and..... O

(there, it just got more speculative and circular)

[Fed up 0]

I have been chasing this engine story all day. I am, for once, completely lost for words. All I can say, is that at this late stage, without an engine deal signed and sealed, the team are not going racing this year - that's the big surprise!

Only for you