DOF_power 0 Report post Posted February 21, 2008 We dicussed about budget caps earlier, and why they won't be effective, as all R&D would be outsourced to shell companies to do while the main company stays within it's budget... Shell companies only work in endurance/sportcar racing because the developement pace is nowhere near as hectic as in F1. Shell companies would only benefit in the medium-long, long, very long term in F1. F1 is rapid prototype development and manufacturing. If you find an innovation it's not gonna be any good if you can't implement it quikly. And that's one of the secrets of Ferrari for example. Share this post Link to post Share on other sites
goferrarigo 0 Report post Posted February 22, 2008 Shell companies only work in endurance/sportcar racing because the developement pace is nowhere near as hectic as in F1. Shell companies would only benefit in the medium-long, long, very long term in F1.F1 is rapid prototype development and manufacturing. If you find an innovation it's not gonna be any good if you can't implement it quikly. And that's one of the secrets of Ferrari for example. You can 'outsource' all the R&D for your car to another company(lets say FIAT TECH) with exclusively sells to you...Thus your basic costs of the people go down(which IMO is the big one) so you can stay within your budget limit and stll get the latest tech and implemet it asap... Share this post Link to post Share on other sites
HandyNZL 1 Report post Posted February 22, 2008 But then you'd be asking for FIAT TECH to sell at less than cost, as they will still have to recoup their labour costs. The only thing outsourcing does is give the buyer a fixed price, that is if a quote is made... Share this post Link to post Share on other sites
goferrarigo 0 Report post Posted February 22, 2008 But then you'd be asking for FIAT TECH to sell at less than cost, as they will still have to recoup their labour costs. The only thing outsourcing does is give the buyer a fixed price, that is if a quote is made... Yeah they will sell at less than their cost, maybe for a dollar or one Euro. Fiat finances the FIAT TECH for labor while it makes profits from the Ferrari division... Basically all i am telling them to do is re-organise the companies in a way that all the R&D is 'outsourced' but still done by the same people in the same place... Just the title of the company is changed, thus making it a seperate legal entity... Share this post Link to post Share on other sites
Max Mosley 2 Report post Posted February 22, 2008 How easy is it to hide the fact that you are selling at less than cost? I mean if you deliver an F1 engine for a dollar we can all see something dodgy is going on. Share this post Link to post Share on other sites
monza gorilla 1 Report post Posted February 22, 2008 But it does fit in with Max's affordable engines scenario. He'd probably congratulate them on getting such a good deal. Share this post Link to post Share on other sites
pabloh20 1 Report post Posted February 22, 2008 But it does fit in with Max's affordable engines scenario. He'd probably congratulate them on getting such a good deal. Share this post Link to post Share on other sites
goferrarigo 0 Report post Posted February 22, 2008 How easy is it to hide the fact that you are selling at less than cost? I mean if you deliver an F1 engine for a dollar we can all see something dodgy is going on. Seriously though, they can charge a nominal fee for it, or take the cheapest price and Fiat subsidizes the rest... And Fiat can say this is just development for A1GP while running the Ferrari F1 engines... So they can get more R&D done for it and with economies of scale it is cheaper to produce... All i am trying to say is there are too many ways around it and this in no ways can be enforced... But it does fit in with Max's affordable engines scenario. He'd probably congratulate them on getting such a good deal. Share this post Link to post Share on other sites
Max Mosley 2 Report post Posted February 22, 2008 Yeah I agree, Ankit. Share this post Link to post Share on other sites
Elizabeth Sterling 0 Report post Posted February 22, 2008 We seem to have gotten lost on the main point or all accepted it's a steaming load. Either way this story seems to have died down which is good news. Share this post Link to post Share on other sites
goferrarigo 0 Report post Posted February 22, 2008 Yeah I agree, Ankit. Good. to know, i can convince people We seem to have gotten lost on the main point or all accepted it's a steaming load. Either way this story seems to have died down which is good news. In this forum, we stay on the main point it a very big deal... I can't think of that ever happening... Share this post Link to post Share on other sites
